Discount Factor 12%

0 1 2 3 4 5 6 7
Initial Investment (2,340)
Labor Savings 175 175 175 175 175 175 175
Other Savings 70 70 70 70 70 70 70
Salvage Value of Forklifts 10
New Depreciation Shields 47 47 47 47 47 47 47
Net Cash Flows (2,330) 292 292 292 292 292 292 292
Present Value Factor (Mid-year) 1.000 0.945 0.844 0.753 0.673 0.601 0.536 0.479
Present Value of Cash Flows (2,330) 276 246 220 196 175 156 140
Net Present Value (227)
Year of Investment
(amounts in 000's of $ unless otherwise noted)
Discounted Cash Flow Analysis - Jiffy Overhead Crane
8 9 10 11 12 13 14 15
175 175 175 175 175 175 175 175
70 70 70 70 70 70 70 70
47 47 47 47 47 47 47 47
292 292 292 292 292 292 292 292
0.427 0.382 0.341 0.304 0.272 0.243 0.217 0.193
125 111 99 89 79 71 63 56
Year of Investment
Discount Factor 12%
0 1 2 3 4 5 6
Initial Investment (12,000)
Operating Savings 1,400 1,400 1,400 1,400 1,400 1,400
Salvage Value of Old Furnace 1,000
Old Depreciation Shield (75) (75) (75) (75) (75) (75)
Tax Loss on Old Furnace 600
New Depreciation Shield 300 300 300 300 300 300
Net Cash Flows (10,400) 1,625 1,625 1,625 1,625 1,625 1,625
Present Value Factor (Mid-year) 1.000 0.945 0.844 0.753 0.673 0.601 0.536
Present Value of Cash Flows (10,400) 1,535 1,371 1,224 1,093 976 871
Net Present Value 253
(amounts in 000's of $ unless otherwise noted)
Discounted Cash Flow Analysis - Sparky Furnace
Year of Investment
7 8 9 10 11 12
1,400 1,400 1,400 1,400 1,400 1,400
(75) (75) (75) (75) (75) (75)
300 300 300 300 300 300
1,625 1,625 1,625 1,625 1,625 1,625
0.479 0.427 0.382 0.341 0.304 0.272
778 695 620 554 494 441
Year of Investment
Discount Factor 12%
0 1 2 3 4 5 6
Initial Investment (500)
Operating Savings 63 63 63 63 63 63
New Depreciation Shield 15 15 15 15 15 15
Net Cash Flows (500) 78 78 78 78 78 78
Present Value Factor (Mid-year) 1.000 0.945 0.844 0.753 0.673 0.601 0.536
Present Value of Cash Flows (500) 74 66 59 52 47 42
Net Present Value (34)
(amounts in 000's of $ unless otherwise noted)
Discounted Cash Flow Analysis - Duralite Finisher
Year of Investment
7 8 9 10
63 63 63 63
15 15 15 15
78 78 78 78
0.479 0.427 0.382 0.341
37 33 30 27
Year of Investment
Discount Factor 12%
0 1 2 3 4 5 6
Initial Investment (48)
Operating Savings 3 3 3 3 3 3
New Depreciation Shield 1 1 1 1 1 1
Net Cash Flows (48) 4 4 4 4 4 4
Present Value Factor (Mid-year) 1.000 0.945 0.844 0.753 0.673 0.601 0.536
Present Value of Cash Flows (48) 4 4 3 3 3 2
Net Present Value (23)
(amounts in 000's of $ unless otherwise noted)
Discounted Cash Flow Analysis - Super Hopper
Year of Investment
7 8 9 10
3 3 3 3
1 1 1 1
4 4 4 4
0.479 0.427 0.382 0.341
2 2 2 1
Year of Investment