Make a pro forma cash flow
 

You have been asked to evaluate the financial viability of a mining project. Here is the relevant information about the investment plan for the project: There is an Excel sheet with a template on Blackboard. Year o Investment Plan Site Preparation Materials, imported, net of tax Tariffs at 15% Sales tax at 5% Skilled labor Ec 421: Public Finance Unskilled labor Equipment Imported, net of tax Tariffs at 15% Sales tax at 5% Land = Total Investment Expenditure Financing Government equity (including grant of land) Government: short-term loan Foreign loan, guaranteed by foreign government Purchases Material inputs Local Sales tax at 596 Imported Tariffs at 15% Sales tax at 596 150 Assignment 4 [4 hours] Skilled labor 400 60 20 250 Here is the operating plan for the mine, which will only work for three years. Operating Plan Year o 1 Sales 2,000 O O 20 600 90 30 100 1,700 850 150 700 200 10 600 90 30 100 50 500 2 2,800 500 100 30 240 12 700 105 35 100 50 425 2 900 150 45 3 2,800 240 12 700 105 35 100 Unskilled labor Other: depreciation Working capital (end of period) Accounts receivable Accounts payable Cash on hand Use the parameter tables above to create a pro forma cash flow. [A spreadsheet file with these numbers may be 50 375 3 800 140 40 4 4 400 Page 1 of 2 0 0