Cost of Capital 10.00% Time/yr 0 1 2 3 4 5 Cash flow Input here -40,000,000 9,470,000 9,470,000 9,470,000 9,470,000 14,470,000 Discounted CF -40000000 8609090.909 7826446.281 7114951.165 6468137.422 8984731.545 NPV - 996642.678 =cf1/((1+n)^1) =cf2/((1+n)^2) =cf3/((1+n)^3) =cf4/((1+n)^4) =cf5/((1+n)^5) PV factor 0.909090909 0.826446281 0.751314801 0.683013455 0.620921323 IRR 9.08% NWC = 5 MILL YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Cash Flow (investment) 40,000,000 - - - - - Sales (27M/YEAR) N/A 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 GM (50%) N/A 13,500,000 13,500,000 13,500,000 13,500,000 13,500,000 SG&A (10%) N/A 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 Depreciation (35M OVER 5 YEARS) N/A 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 EBIT (sum of GM-SG&A-Depr) N/A 3,800,000 3,800,000 3,800,000 3,800,000 3,800,000 Tax (35%) N/A 1,330,000 1,330,000 1,330,000 1,330,000 1,330,000 Net Income after Tax N/A 2,470,000 2,470,000 2,470,000 2,470,000 2,470,000 CF (NI after tax plus add back item) N/A 9,470,000 9,470,000 9,470,000 9,470,000 14,470,000