Project Estimates
Cost of Buildings & Equipment 250,000
Depreciation (CCA) Rate 20%
Life of Project (Years) 5
Salvage Value 10,000
First Year Sales 350,000
Annual Revenue Growth Rate 4.00%
Variable Costs as % of Revenue 45%
Fixed Costs 125,000
Tax Rate 35%
WACC 11.0%
Depreciation/Year (Straight Line) 50,000.00
Project Annual Cash Flows Project
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Initial Outlay (250,000)
Revenue 350,000 364,000 378,560 393,702 409,450
Variable Costs (157,500) (163,800) (170,352) (177,166) (184,253)
Fixed Costs (125,000) (125,000) (125,000) (125,000) (125,000)
Depreciation Expense
Taxable Cash Flows
Taxes
Add: Depreciation
Annual After-Tax Cash Flow
Terminal Cash Flow 10,000
Total Annual Cash Flows (250,000)
Net Present Value
Internal Rate of Return