Hi,

Hope you are well.

This is a discounted cash flow question.

I have a CapEx = 12m.

Working Capital = 5m.

I recover 1m at the end of the project.

The CapEx has tax allowance on the entire investment split equally over the first 4 years.

Tax Rate = 17.25%

I have an annuity factor of 3.993 as I have a discount rate of 8% over 5 years.

I have a cash inflow of 19,923,750 each of the 5 years as I have a 15% increase in revenue of 125m and a reduction in costs of 1.5% on 78.25m each year.

I have worked out that the NPV = 52,222,032.42

How do I calculate the minimum incremental % increase in revenue to give a NPV of zero please?

Kind regards,

Mark