772183.

48
151877.6
924061.08
Project Capital investment Cash F. Cost of cap.
I -7 1.2 5%
II -12 1.5 5%
III -16 2.2 5%
IV -10 1.4 5%
V -11 1.6 5%

YEAR 0 -1250000
YEAR 1 212800
YEAR 2 212800
YEAR 3 212800
YEAR 4 212800
YEAR 5 212800
YEAR 6 112800
YEAR 7 212800
YEAR 8 212800
YEAR 9 212800
YEAR 10 762800

1000000
CCA
YEAR 1 YEAR 2 YEAR 3 YEAR 4
100000 180000 144000 115200
900000 720000 576000 460800
44000 79200 63360 50688

$249,572.26
-250000 -100000
-250000 -56742.6855719

1,718,899.75

60431.4774834
1,658,468.27
CCA RATE 12.50%
UCC 10,000,000
CCA

YEAR 0 YEAR 1
CCA 625000
UCC 9,375,000

Revenues $9,000,000
COGS -6,000,000
DEPRECIATION -2,850,000
EBIT $150,000
ADD DEP. 2,850,000
NEW EBIT $3,000,000
LESS CCA -625000
less incremental cost -200000
EBIT $2,175,000
TAX EXPENSE $739,500.00
UNLEVERED NET INCOME $1,435,500.00
PV OF INCOME $8,187,356.14

$9,000,000 11,500,000 $13,000,000

-6,000,000 -7,500,000 -8,400,000
3,000,000
$1,980,000
PV of Perpetuity* NPV Npv/capital invest.
24 17 2.4285714286
30 18 1.5
44 28 1.75
28 18 1.8
32 21 1.9090909091

3000000 4000000
2702702.7027027 3246489.73297622

YEAR 5 YEAR 6 YEAR 7 YEAR 8

92160 73728 58982.4 47185.92
368640 294912 235929.6 188743.68
40550.4 32440.32 25952.256 20761.8048

350000
112690.6328067 -194052.052765
260267.8571 8854.264 251413.5931
242559.32913286 260267.857142857
8854.2640062441
251413.593136613
324123.6476

17708.52801
YEAR 2 YEAR 3 YEAR 4 YEAR 5
1171875 1025390.625 897216.796875 785064.697265625
8,203,125 7,177,734 6,280,518 5,495,453

11,500,000 $13,000,000 $13,000,000 $13,000,000

-7,500,000 -8,400,000 -8,400,000 -8,400,000
-2,350,000 -1,200,000 -1,200,000 -1,200,000
1,650,000 $3,400,000 $3,400,000 $3,400,000
2,350,000 1,200,000 1,200,000 1,200,000
4,000,000 $4,600,000 $4,600,000 $4,600,000
-1171875 -1025390.625 -897216.796875 -785064.697265625
-200000 -200000 -200000 -200000
$2,628,125 $3,374,609 $3,502,783 $3,614,935
$893,562.50 $1,147,367.19 $1,190,946.29 $1,229,078.00
$1,734,562.50 $2,227,242.19 $2,311,836.91 $2,385,857.30

$13,000,000 $13,000,000 $13,000,000

-8,400,000 -8,400,000 -8,400,000
 4600000 4600000 4600000 4600000
3363480.3539844 3030162.48 2729876.109069 2459347.846008

17532059.22581

YEAR 9 YEAR 10
37748.736 30198.9888
150994.944 120795.955
16609.44384 13287.5551

625000
YEAR 6
686931.61010742
4,808,521

$13,000,000
-8,400,000
-1,200,000
$3,400,000
1,200,000
$4,600,000
-686931.61010742
-200000
$3,713,068
$1,262,443.25
$1,718,899.75