CAPITALBUDGETINGWORKSHEET

Equity Analysis of a Project

INPUTSHEET:USERENTERSALLBOLDNUMBERS
INITIALINVESTMENT
InitialInvestment=

CASHFLOWDETAILS
$100,000

DISCOUNTRATE
$25,000

Revenuesinyear1=

Opportunitycost(ifany)=

$0

Var.Expensesas%ofRev=

Lifetimeoftheinvestment

10

Fixedexpensesinyear1=

SalvageValueatendofproject=
Deprec.method(1:St.line;2:DDB)=
TaxCredit(ifany)=
Otherinvest.(nondepreciable)=

$10,000

Approach(1:Direct;2:CAPM)=

35%

1.Discountrate=

2a.Beta

20%

Taxrateonnetincome=

b.Risklessrate=

Ifyoudonothavethebreakdownoffixedandvariable

c.Marketriskpremium=

0%

expenses,inputtheentireexpenseasa%ofrevenues.

d.DebtRatio=

e.CostofBorrowing=
Discountrateused=

WORKINGCAPITAL
InitialInvestmentinWork.Cap=

$10,000

WorkingCapitalas%ofRev=

25%

Salvageablefractionatend=

100%

GROWTHRATES
1

Revenues

Donotenter

5.00%

5.00%

5.00%

10.00%

10.00%

10.00%

FixedExpenses

Donotenter

5.00%

5.00%

5.00%

10.00%

10.00%

10.00%

CAPITALBUDGETINGWORKSHEET

Default:Thefixedexpensegrowthrateissetequaltothegrowthrateinrevenuesbydefault.
YEAR
0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

1
$25,000
$8,750
$0
$16,250
$9,000
$7,250
$1,450
$5,800
$9,000
($3,750)
$18,550
1.11
$16,712

1
$26,250
$9,188
$0
$17,063
$9,000
$8,063
$1,613
$6,450
$9,000
($3,438)
$18,888
1.2321
$15,330

1
$27,563
$9,647
$0
$17,916
$9,000
$8,916
$1,783
$7,133
$9,000
$4,078
$12,054
1.367631
$8,814

1
$28,941
$10,129
$0
$18,811
$9,000
$9,811
$1,962
$7,849
$9,000
$345
$16,505
1.51807041
$10,872

1
$31,835
$11,142
$0
$20,693
$9,000
$11,693
$2,339
$9,354
$9,000
$724
$17,631
1.6850581551
$10,463

1
$35,018
$12,256
$0
$22,762
$9,000
$13,762
$2,752
$11,009
$9,000
$796
$19,214
1.8704145522
$10,272

1
$38,520
$13,482
$0
$25,038
$9,000
$16,038
$3,208
$12,830
$9,000
$875
$20,955
2.0761601529
$10,093

INITIALINVESTMENT
Investment
$100,000
TaxCredit
$0
NetInvestment
$100,000
+WorkingCap
$10,000
+Opp.Cost
$0
+Otherinvest.
$0
InitialInvestment
$110,000
SALVAGEVALUE
Equipment
WorkingCapital
OPERATINGCASHFLOWS
LifetimeIndex
Revenues
Var.Expenses
FixedExpenses
EBITDA
Depreciation
EBIT
Tax
EBIT(1t)
+Depreciation
Work.Cap
NATCF
($110,000)
DiscountFactor
1
DiscountedCF
($110,000)

InvestmentMeasures
NPV=
$9,893
IRR=
11.37%

CAPITALBUDGETINGWORKSHEET
ROC=

BookValue(beginning)
Depreciation

18.78%

$100,000
$9,000

$91,000
$9,000

BOOKVALUE&DEPRECIATION
$82,000
$73,000
$9,000
$9,000

$64,000
$9,000

$55,000
$9,000

$46,000
$9,000

CAPITALBUDGETINGWORKSHEET
BV(ending)

$100,000

$91,000

$82,000

$73,000

$64,000

8
$55,000

$46,000

$37,000

CAPITALBUDGETINGWORKSHEET

COUNTRATE
1

roach(1:Direct;2:CAPM)=

11%

Discountrate=

0.9

Risklessrate=

4.00%

Marketriskpremium=

5.50%
60.00%

CostofBorrowing=

11.00%

countrateused=

11.00%

10

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

CAPITALBUDGETINGWORKSHEET

10

$0
$0

$0
$0

$10,000
$12,818

1
$42,372
$14,830
$0
$27,542
$9,000
$18,542
$3,708
$14,833
$9,000
$963
$22,870
2.3045377697
$9,924

1
$46,609
$16,313
$0
$30,296
$9,000
$21,296
$4,259
$17,037
$9,000
$1,059
$24,977
2.5580369244
$9,764

1
$51,270
$17,945
$0
$33,326
$9,000
$24,326
$4,865
$19,460
$9,000
$1,165
$27,295
2.8394209861
$17,649

10

CAPITALBUDGETINGWORKSHEET

$37,000
$9,000

$28,000
$9,000

$19,000
$9,000

11

CAPITALBUDGETINGWORKSHEET
$28,000

$19,000

$10,000

12