excel

E G H 1 K TABLE 100.2 Capital budgeting framework D The Majestic Makh and Compost Company Input variables: Tax rate 40.0% CCA rate 20.0% Initivement 5800,000 Discount rate NWC as of sale 15.0 15.0% 5.000 Statements of comprehensive income Year Unit price (Table 10.5) Unitales (Table 10.5) Revenues (Unit Price Unit sales) Variable costs (560x Unitsales) Fixed costs CCA EBIT (Revenues - (Costs + CCA) Taxes (EBIT 40%) Net income (EBIT-banes) 5 120 120 5 120 1105 110 $ 1101 1101 110 3.000 5.000 6,000 6,500 6,000 4000 1000 $360,000 180,000 300,000 360.000 390,000 360,000 300,000 240,000 180,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25.000 30,000 144000 115,200 92160 71.728 58,982 47.186 27749 $35.000 30.000 $ 45,000 1 Projected cash flows Year Operating cash flows ELIT CCA Taxes Op cash flow (tax shield approach) Networking capital Initial NWC NWC Increase NWCCOVERY Add to WC $75.000 80,000 30,000 $125,000 $ 20,000 $ 14,000 16,000 $1.000 (750) 5 (8.250) 3 (16,500) 3 (16.500) $ (16.500) 320,000|4000 556.000 518,000 5 10750 12.750 3.6,500), 3(183500) 100 101 Capital Spending (Table 10.8) Initial $800,000 Alter-tax savage 5150,000) Netcap. spending $800.000 5 ${150,000 0 Total project cash flow (OCF - Capital spending -Addoto WC 5(820,0001 5 91,000 Cumulative cash flow $(#20,000) $729,000) 1542,400) S313,120) $095,706) 3107,025 $282,128 1422,503 5728,602 Discounted canh flow (15% 56820,000) $ 79,130 NPV IRR Cash flows Cellformula (120.000 161010.1,3C56/2"SCSS.CSCS6- SUMDIOSES101"SCS) 591.000 32 -135655) (F133655) 3186.6001511470-56569145 E G H 1 K TABLE 100.2 Capital budgeting framework D The Majestic Makh and Compost Company Input variables: Tax rate 40.0% CCA rate 20.0% Initivement 5800,000 Discount rate NWC as of sale 15.0 15.0% 5.000 Statements of comprehensive income Year Unit price (Table 10.5) Unitales (Table 10.5) Revenues (Unit Price Unit sales) Variable costs (560x Unitsales) Fixed costs CCA EBIT (Revenues - (Costs + CCA) Taxes (EBIT 40%) Net income (EBIT-banes) 5 120 120 5 120 1105 110 $ 1101 1101 110 3.000 5.000 6,000 6,500 6,000 4000 1000 $360,000 180,000 300,000 360.000 390,000 360,000 300,000 240,000 180,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25.000 30,000 144000 115,200 92160 71.728 58,982 47.186 27749 $35.000 30.000 $ 45,000 1 Projected cash flows Year Operating cash flows ELIT CCA Taxes Op cash flow (tax shield approach) Networking capital Initial NWC NWC Increase NWCCOVERY Add to WC $75.000 80,000 30,000 $125,000 $ 20,000 $ 14,000 16,000 $1.000 (750) 5 (8.250) 3 (16,500) 3 (16.500) $ (16.500) 320,000|4000 556.000 518,000 5 10750 12.750 3.6,500), 3(183500) 100 101 Capital Spending (Table 10.8) Initial $800,000 Alter-tax savage 5150,000) Netcap. spending $800.000 5 ${150,000 0 Total project cash flow (OCF - Capital spending -Addoto WC 5(820,0001 5 91,000 Cumulative cash flow $(#20,000) $729,000) 1542,400) S313,120) $095,706) 3107,025 $282,128 1422,503 5728,602 Discounted canh flow (15% 56820,000) $ 79,130 NPV IRR Cash flows Cellformula (120.000 161010.1,3C56/2"SCSS.CSCS6- SUMDIOSES101"SCS) 591.000 32 -135655) (F133655) 3186.6001511470-56569145