Equipment

Installation
CAPEX
(-) NOWC
FCF (0)

Salvage
Tax @ 40%
At salvage valu
(+) NOWC

-4000000
-200,000
-4,200,000
($480,000.00)
($4,680,000.00)

1000000
400,000
600,000
480,000
1,080,000

Investment
Sales
Variable Cost
Operating Cost
Depreciation
EBIT
Tax @ 40%
After Tax
(+) Depreciation

NPV

YEAR 0
YEAR 1
YEAR 2
YEAR 3
(20,000.00)
234,135.00 226,460.00 255,132.00
125,565.00 119,444.00 133,665.00
66,750.00
68,950.00
69,690.00
6,600.00
9,000.00
3,000.00
35,220.00
29,066.00
48,777.00
14,088.00
11,626.40
19,510.80
21,132.00
17,439.60
29,266.20
6,600.00
9,000.00
3,000.00
(20,000.00)
27,732.00
26,439.60
32,266.20
75,895.09

Investment
Sales
Variable Cost
Operating Cost
Depreciation
EBIT
Tax @ 40%
After Tax
(+) Depreciation

NPV

YEAR 0
YEAR 1
YEAR 2
YEAR 3
(20,000.00)
234,135.00 226,460.00 255,132.00
125,565.00 119,444.00 133,665.00
66,750.00
68,950.00
69,690.00
5,000.00
5,000.00
5,000.00
36,820.00
33,066.00
46,777.00
14,728.00
13,226.40
18,710.80
22,092.00
19,839.60
28,066.20
5,000.00
5,000.00
5,000.00
(20,000.00)
27,092.00
24,839.60
33,066.20
75,553.44

$1,861.47

YEAR 4
272,317.80
138,923.40
68,900.00
1,400.00
63,094.40
25,237.76
37,856.64
1,400.00
39,256.64

YEAR 4
272,317.80
138,923.40
68,900.00
5,000.00
59,494.40
23,797.76
35,696.64
5,000.00
40,696.64

-8790000
($1,239,412.05)

1870000

1870000

1870000

1870000

1920000

1970000

NPV

$12,436.63

($24,394.30)

0
(17,500)

1
10,000

2
16,000

3
15,000
(17,500)
(2,500)

(40,000)

1
8,000

2
16,000

3
15,000

$28,167.75

10,000

16,000

15,000

4
12,000

5
11,000

6
10,000