Bethesda Mining Company

Book value (including

depreciation)
Salvage value
PROFIT
Tax @ 38% on loss
Total

26554000
51000000
24446000
9289480
41710520

Year 0
Opportunity cost(loss in utilising the
land)

Year1

-5500000

Coal production
Excess production
500000 tons @ $82
Excess production @ $76
TOTAL REVENUE

620000
120000
41000000
9120000
50120000

Fixed cost
Variable cost
COSTS
DEPRECIATION
COST of Reclamation
Charitable expense (COST)
Net income
OCF (After Adding Depreciation)
NWC
NWC CF (Begin - end)
cash inflow in selling equipment

4100000
19220000
23320000
12146500

Total cash flow

Present value of cash flows

NPV
Pay back period
Profitability Index
IRR

85000000

2506000

-93006000
95,684,704.57

2,678,704.57
3.3148797817
1.03
13.1705715%

9085170
21231670
2734000
-228000
21003670

Year2

Year3

Year4

680000
180000
41000000
13680000
54680000

730000
230000
41000000
17480000
58480000

590000
90000
41000000
6840000
47840000

4100000
21080000
25180000
20816500

4100000
22630000
26730000
14866500

4100000
18290000
22390000
10616500

Year 5

Year 6

2700000
5383770
26200270
2924000
-190000

10467770
25334270
2392000
532000

26010270

25866270

6000000
9196770 -1674000 -3720000
19813270 -1674000 -3720000
2392000
41710520
63915790 -1674000 -3720000

Goodweek Tires

Year
R & D costs (sunk cost) - need not be considered
Marketing Cost (sunk cost) - need not be considered
Initial investment
OEM market Production in cars
in tyres
OEM market (11%)
Selling price
Sales in OEM market
Variable cost per tyre
total variable cost
Replacement tyres
Replacement market(8%)
Selling price
sales in Replacement market
Variable cost per tyre
Total Variable Cost
Depreciation
Marketing and adminstration cost
Net income after tax
OCF (after adding depreciation)
NWC
Change in NWC
Cash inflow in sale of equipment

total cash flow

present value of cash flows

NPV
Profitability index
payback period
Discounted cash flow
Discounted Payback Period
ARR
IRR

Tax
Inflation
Discount

40%
3.25%
13.4
0
10000000
5000000
160000000

9000000

-169000000
211,218,505.20

42,218,505.20
1.2498136403
3.1477149303
-169000000
3.59
0.4637963221
22.0445%

6200000
24800000
2728000
41
111848000
29
79112000

6355000
25420000
2796200
42.7425
119516578.5
30.2325
84536116.5

32000000
2560000
62
158720000
29
74240000
22864000
43000000
30811200
53675200
40585200
-31585200

32640000
2611200
64.635
168774912
30.2325
78943104
39184000
44397500
24738462
63922462
43243723.575
-2658523.575

22090000

61263938.425

19,479,717.81

47,640,773.42

6513875
26055500
2866105
44.55905625
127710933.913406
31.51738125
90332123.9875312

6676721.875
26706887.5
2937757.625
46.4528161406
136467114.819844
32.8568699531
96525520.2384263

33292800
2663424
67.3819875
179466802.6752
31.51738125
83944149.6384
27984000
45840418.75
35446226.527605
63430226.527605
46076660.4882909
-2832936.91329094
60597289.6143141

33958656
2716692.48
70.2457219688
190836024.624674
32.8568699531
89262011.5179926
19984000
47330232.359375
44520825.1972345
64504825.1972345
0
46076660.4882909
58993600
169575085.685525

41,554,114.86

102,543,899.11

Salvage value
book value

65000000
49984000

Profit
tax @ 40%
total

15016000
6006400
58993600