The depreciation schedule should start in the year that the expense was in- curred. Construct separate depreciation schedules for each of the years in which an investment was made, and an overall depreciation schedule. Determine the tax calculation from the revised depreciation schedule. Determine IN A B C D E F G H KI M 11. Inputs 2 3 4 Tax rate 5 Conservation Royalty 6 Electricity Price 7 PercentagePaid 8 9 2. PROJECT FINANCIALS Value 30% 5% 7 80% P Q R 10 11 Year 12 Santa Clara HEPS 13 14 REVENUE 0 1 2 3 4 5 6 7 18 9 10 11 12 133 14 15 16 0.0 0.0 0.0 0.0 154.0 219.8 225.7 225.7 225.7 225.7 225.7 225.7 225.7 225.7 225.7 225.7 225.7 15 Available Power 314.0 448.0 460.0 460.0 460.0 460.0 460.0 460.0 460.0 460.0 460.0 460.0 460.0 16 Total possible sales 192.5 274.7 282 1 282 1 282.1 282.1 282.1 2821 282.1 282.1 282.1 282.1 282.1 17 COST OF GOODS SOLD 00 0.0 0.0 0.0 12.9 12.9 12.9 12.9 12.9 12.9 12.9 12.9 12.9 12.9 12.9 12.9 12.9 18 CONSERVATION ROYALTY 0.0 00 0.0 00 77 110 113 11.3 11.3 11.3 113 11.3 11.3 11.3 11.3 11.3 11.3 19 TAX 00 00 00 00 400 49.2 50.8 50.8 50.8 50.8 50.8 50.8 50.8 50.8 50.8 50.8 50.8 20 Depreciation 00 0.0 00 00 0.0 31.9 32.1 32.1 32 1 32.1 321 32.1 32.1 32.1 32.1 32.1 32.1 21 Profit before tax 00 00 0.0 00 133.4 164.0 169.3 169.3 169.3 169.3 169.3 169.3 169.3 169.3 169.3 169.3 169.3 22 23 CASH FLOW 0.0 00 0.0 00 93.4 146.7 150.7 150.7 150.7 150.7 150.7 150.7 150.7 150.7 150.7 150.7 150.7 24 INVESTMENT AND WORKING CAPITAL 10.0 750 78.0 114.0 141.0 60.0 4.0 0.0 00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 25 FREE CASH FLOW 100 750 78.0 1140 -476 86.7 146.7 150.7 150 7 150.7 150.7 150.7 150.7 150.7 150.7 150.7 150.7 26 CUMULATIVE FREE CASH FLOW 100 85.0 163.0 277.0 -324.6 -237.9 -91.2 59.4 210.1 360.8 5115 662 1 812.8 963.5 1,114.2 1,264.8 1,415.5 27 28 DISCOUNT RATE 29 DISCOUNT FACTOR 30 DISCOUNTED CASH FLOW 10.0% 1.000 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.218 10.0 -68.2 -64.5 -856 -32.5 53.8 82.8 77.3 703 63.9 58.1 52.8 48.0 43.6 39.7 36.1 32.8 662.1 812.8 963.5 28 DI COUNT RATE 10.0% 29 DISCOUNT FACTOR 1.000 30 DISCOUNTED CASH FLOW -10.0 0.909 0.826 0.751 -68.2 -64.5 -85.6 0.683 0.621 0.564 -32.5 53.8 82.8 0.513 0.467 0.424 0.386 0.350 0.319 0.290 77 3 70.3 63.9 58.1 52.8 31 48.0 43.6 32 NET PRESENT VALUE 579.178 33 34 Investment 10.00 68.18 64.46 85.65 96.30 37 26 2.26 35 PV(Total Investment) 364 36 Profitability Index = 1 + NPV/(Total Investme 2.59 37 INTERNAL RATE OF RETURN 27.20% 38 Payback 39 FV 0.0 0.0 0.0 0.0 40 FV -364.1 0.0 0.0 0.0 691.2 0.0 986.8 0.0 921.5 0.0 837.7 0.0 761.6 0.0 692 4 00 629.4 0.0 572.2 0.0 520.2 0.0 472.9 0.0 41 MIRR 11.57% 42 43 Depreciation schedule 44 Total 45 Depreciation 46 Book Value 0.0 00 0.0 0.0 0.0 00 0.0 0.0 418.0 27.9 478.0 31.9 482.0 00 0.0 0.0 0.0 390 1 418.2 32.1 390.1 358.0 325.8 321 32.1 32.1 321 32.1 321 32.1 293.7 261.6 229.4 197.3 165.2 47 48 49 Capital costs 10.0 75.0 78.0 114.0 141.0 60.0 4.0 50 1.00 1.00 1.00 1.00 1.00 1.00 1.00 51 52 0.35 1400 53 800 700