Beruflich Dokumente
Kultur Dokumente
Expected
2016 2015 2014
Sales $ 76,133.00 $ 71,848.00 $ 48,752.00
Other Income $ 999.00 $ 698.00 $ 986.00
Gross Income $ 77,132.00 $ 72,546.00 $ 49,738.00
CoGS $ 42,508.00 $ 42,344.00 $ 32,502.00
Selling, General, Admin $ 5,362.00 $ 3,622.00 $ 3,563.00
RnD $ 1,377.00 $ 1,287.00 $ 906.00
Interest $ 8,406.00 $ 8,726.00 $ 2,700.00
Total Expense $ 57,653.00 $ 55,979.00 $ 39,671.00
Income Before Tax $ 19,478.00 $ 16,566.00 $ 11,049.00
Taxes $ (969.00) $ (1,111.00) $ (2,229.00)
Net Income $ 18,509.00 $ 15,455.00 $ 8,820.00
Expected
Assets 2016 2015
Cash & Temp Investment $ 37,692.00 $ 26,726.00
Acc Receive $ 11,779.00 $ 5,731.00
Inventories $ 27,018.00 $ 32,310.00
Prepaid Expenses $ 3,393.00 $ 1,336.00
Total Current Assets $ 79,882.00 $ 66,103.00
Property, Plant, Equipment
Land $ 225.00 $ 225.00
Building $ 3,065.00 $ 3,023.00
Machinery & Equipment $ 2,693.00 $ 2,124.00
Furniture & Fixtures $ 168.00 $ 152.00
Construction in Progress $ 167.00 $ 89.00
Total Fixed Assets $ 6,318.00 $ 5,613.00
Less accumulated depr $ 1,263.00 $ 827.00
Net property, plant, equipment $ 5,055.00 $ 4,786.00
Other Assets $ 64,037.00 $ 64,834.00
Total Assets $ 148,974.00 $ 135,723.00
Depreciation 5-MACRS
Project 1 2 3
Automation Marketable
Property Existing Plan Securities
Investment Budget
Property/Machinery 10.00 7.20 1.50
Working Capital - 0.50
Year Expected Cash Flow
0 (4.00) (1.61) 1.65
1 (6.00) 2.88 1.82
2 5.56 3.46 2.00
3 6.67 4.15
4 8.00 4.98
5 9.60 5.97
6 11.52 7.17
7 13.82 8.60
8 16.59 10.32
9 19.91 11.87
10 25.88 13.05
Undiscounted Sum 107.55 70.84 5.47
Rp 11,550.00
Lessee Input Data:
1. Loan NPV $0
2. Lease NPV $0
3. Loan IRR 15.00%
4. Lease IRR Err:504
5. Savings $ -
Loan Amortization Table
Year 1 2 3
Beginning Balance $ 720,000 $613,213 $490,408
Annual Payment $214,787 $ 214,787.20 $ 214,787.20 $ 214,787.20
Interest Before Tax @ 15.00% $ 108,000.00 $ 91,981.92 $ 73,561.13
Principal Reduction $ 106,787.2 $ 122,805.3 $ 141,226.1
Ending Balance $613,213 $490,408 $349,181
Tax Rate 0.00%
Interest After Tax $108,000 $91,982 $73,561
Year 1 2 3
Beginning Balance $ 720,000 $613,213 $490,408
Annual Payment $214,787 $ 214,787.20 $ 214,787.20 $ 214,787.20
Interest Before Tax @ 15.00% $ 108,000.00 $ 91,981.92 $ 73,561.13
Principal Reduction $ 106,787.2 $ 122,805.3 $ 141,226.1
Ending Balance $613,213 $490,408 $349,181
Tax Rate 25.00%
Interest After Tax $81,000 $68,986 $55,171
$52,377 $28,016
4 5
$349,181 $186,771
$ 214,787.20 $ 214,787.20
$ 52,377.22 $ 28,015.72
$ 162,410.0 $ 186,771.5
$186,771 $0
$39,283 $21,012
Calculation of the Present Value of Cash Outflows
Tax 25%
Lease
Forgone Tax Forgone Initial Lease Payment Lease
Savings Residual Value Purchase Payment Less Payment
Associated with after Price after Incremental after
Year Depreciation Tax Saved Tax 1 Cash Flow 1 Tax 2
0 $720,000 ($120,960) $599,040 ($127,008)
1 ($36,000) ($120,960) ($156,960) ($127,008)
2 ($57,600) ($120,960) ($178,560) ($127,008)
3 ($34,560) ($120,960) ($155,520) ($127,008)
4 ($20,736) ($120,960) ($141,696) ($127,008)
5 ($20,736) ($180,000) $0 ($200,736) $0
Sum ($169,632) ($180,000) $720,000 ($604,800) ($234,432) ($635,040)
IRR 11.87%
Lease Lease Lease
Payment Lease Payment Lease Payment
Less Payment Less Payment Less
Incremental after Incremental after Incremental
Cash Flow 2 Tax 3 Cash Flow 3 Tax 4 Cash Flow 4
$550,656 ($177,408) $542,592 ($185,472) $534,528
($169,344) ($177,408) ($177,408) ($185,472) ($185,472)
($169,344) ($177,408) ($177,408) ($185,472) ($185,472)
($169,344) ($177,408) ($177,408) ($185,472) ($185,472)
($169,344) ($177,408) ($177,408) ($185,472) ($185,472)
($180,000) $0 ($180,000) $0 ($180,000)
($306,720) ($887,040) ($347,040) ($927,360) ($387,360)
16.69% 19.08% 21.52%
Year 1 2 3 4
Beginning Balance $ 759,000 $658,063 $541,985 $408,496
Annual Payment $214,787 $ 214,787.20 $ 214,787.20 $ 214,787.20 $ 214,787.20
Interest Before Tax @ 15.00% $ 113,850.00 $ 98,709.42 $ 81,297.75 $ 61,274.34
Principal Reduction $ 100,937.2 $ 116,077.8 $ 133,489.4 $ 153,512.9
Ending Balance $658,063 $541,985 $408,496 $254,983
Tax Rate 0.00%
Interest After Tax $113,850 $98,709 $81,298 $61,274
Year 1 2 3 4
Beginning Balance $ 759,000 $658,063 $541,985 $408,496
Annual Payment $214,787 $ 214,787.20 $ 214,787.20 $ 214,787.20 $ 214,787.20
Interest Before Tax @ 15.00% $ 113,850.00 $ 98,709.42 $ 81,297.75 $ 61,274.34
Principal Reduction $ 100,937.2 $ 116,077.8 $ 133,489.4 $ 153,512.9
Ending Balance $658,063 $541,985 $408,496 $254,983
Tax Rate 25.00%
Interest After Tax $85,388 $74,032 $60,973 $45,956
Interest Five-Year
Payment MACRS Depr. Depr.
after Principal Depr. before Tax
Year Tax Payment Rate Tax Savings
0
1 $85,388 $ 100,937.2 20.00% $151,800 $0
2 $74,032 $ 116,077.8 32.00% $242,880 $0
3 $60,973 $ 133,489.4 19.20% $145,728 $0
4 $45,956 $ 254,982.7 11.52% $87,437 $0
5 $28,686 $ 78,442.9 11.52% $87,437 $0
Sum $295,034 $683,930 94.24% $715,282 $0
NPV
Interest Five-Year
Payment MACRS Depr. Depr.
after Principal Depr. before Tax
Year Tax Payment Rate Tax Savings
0
1 $85,388 $100,937 20.00% $151,800 $0
2 $74,032 $116,078 32.00% $242,880 $0
3 $60,973 $133,489 19.20% $145,728 $0
4 $45,956 $254,983 11.52% $87,437 $0
5 $28,686 $78,443 11.52% $87,437 $0
Sum $295,034 $683,930 94.24% $715,282 $0
NPV
ue of Cash Outflows Sample Calculation of the Internal Rate of Return
for Lease Financing
Tax 0%
Residual
Cash Flow Loan Lease 1
after Cash Cash
Tax Outflow Outflow
$151,800 $170,000
$214,787 $170,000
$214,787 $170,000
$214,787 $170,000
$214,787 $170,000
($151,800) $62,987 $0
($151,800) $1,073,936 $850,000
$832,326 $680,959
Tax 25%
Residual
Cash Flow Loan Lease 1
after Cash Cash
Tax Outflow Outflow
$151,800 $127,500
$186,325 $127,500
$190,110 $127,500
$194,463 $127,500
$300,938 $127,500
($151,800) ($44,672) $0
($151,800) $978,964 $637,500
$811,437 $537,187
Internal Rate of Return
inancing
Lease
Lease Payment
Payment Less
after Incremental
Tax 1 Cash Flow 1
($170,000) $589,000
($170,000) ($170,000)
($170,000) ($170,000)
($170,000) ($170,000)
($170,000) ($170,000)
$0 ($151,800)
($850,000) ($242,800)
12.93%
Lease
Lease Payment
Payment Less
after Incremental
Tax 1 Cash Flow 1
($127,500) $631,500
($127,500) ($127,500)
($127,500) ($127,500)
($127,500) ($127,500)
($127,500) ($127,500)
$0 ($151,800)
($637,500) ($30,300)
1.54%
Loan Amortization Table
Year 1 2 3 4
Beginning Balance $ 737,000 $632,763 $512,890 $375,036
Annual Payment $214,787 $ 214,787.20 $ 214,787.20 $ 214,787.20 $ 214,787.20
Interest Before Tax @ 15.00% $ 110,550.00 $ 94,914.42 $ 76,933.50 $ 56,255.45
Principal Reduction $ 104,237.2 $ 119,872.8 $ 137,853.7 $ 158,531.7
Ending Balance $632,763 $512,890 $375,036 $216,505
Tax Rate 0.00%
Interest After Tax $110,550 $94,914 $76,934 $56,255
Year 1 2 3 4
Beginning Balance $ 737,000 $632,763 $512,890 $375,036
Annual Payment $214,787 $ 214,787.20 $ 214,787.20 $ 214,787.20 $ 214,787.20
Interest Before Tax @ 15.00% $ 110,550.00 $ 94,914.42 $ 76,933.50 $ 56,255.45
Principal Reduction $ 104,237.2 $ 119,872.8 $ 137,853.7 $ 158,531.7
Ending Balance $632,763 $512,890 $375,036 $216,505
Tax Rate 25.00%
Interest After Tax $82,913 $71,186 $57,700 $42,192
Interest Five-Year
Payment MACRS Depr. Depr.
after Principal Depr. before Tax
Year Tax Payment Rate Tax Savings
0
1 $82,913 $ 104,237.2 20.00% $147,400 $0
2 $71,186 $ 119,872.8 32.00% $235,840 $0
3 $57,700 $ 137,853.7 19.20% $141,504 $0
4 $42,192 $ 216,504.6 11.52% $84,902 $0
5 $24,357 $ 34,193.1 11.52% $84,902 $0
Sum $278,347 $612,661 94.24% $694,549 $0
NPV
Interest Five-Year
Payment MACRS Depr. Depr.
after Principal Depr. before Tax
Year Tax Payment Rate Tax Savings
0
1 $82,913 $104,237 20.00% $147,400 $0
2 $71,186 $119,873 32.00% $235,840 $0
3 $57,700 $137,854 19.20% $141,504 $0
4 $42,192 $216,505 11.52% $84,902 $0
5 $24,357 $34,193 11.52% $84,902 $0
Sum $278,347 $612,661 94.24% $694,549 $0
NPV
ue of Cash Outflows Sample Calculation of the Internal Rate of Return
for Lease Financing
Tax 0%
Residual
Cash Flow Loan Lease 1
after Cash Cash
Tax Outflow Outflow
$147,400 $163,000
$214,787 $163,000
$214,787 $163,000
$214,787 $163,000
$214,787 $163,000
($221,100) ($6,313) $0
($221,100) $1,000,236 $815,000
$789,470 $652,919
Tax 25%
Residual
Cash Flow Loan Lease 1
after Cash Cash
Tax Outflow Outflow
$147,400 $122,250
$187,150 $122,250
$191,059 $122,250
$195,554 $122,250
$258,696 $122,250
($221,100) ($162,550) $0
($221,100) $817,308 $611,250
$704,592 $515,068
Internal Rate of Return
inancing
Lease
Lease Payment
Payment Less
after Incremental
Tax 1 Cash Flow 1
($163,000) $574,000
($163,000) ($163,000)
($163,000) ($163,000)
($163,000) ($163,000)
($163,000) ($163,000)
$0 ($221,100)
($815,000) ($299,100)
15.09%
Lease
Lease Payment
Payment Less
after Incremental
Tax 1 Cash Flow 1
($122,250) $614,750
($122,250) ($122,250)
($122,250) ($122,250)
($122,250) ($122,250)
($122,250) ($122,250)
$0 ($221,100)
($611,250) ($95,350)
4.57%
Summary Table of the Net Present Value and Internal Rate of Return
For Four Tax and Cost-of-Capital Scenarios1
Scenario A B C
Effective tax rate 0.0% 0.0% 25.0%
Pretax cost of debt 10.0% 12.5% 10.0%
After-tax cost of debt 10.00% 12.50% 7.50%
Shima Shieki
NPV of loan $871,757 $832,326 $840,395
NPV of lease $708,877 $680,959 $554,539
IRR of lease 12.93% 12.93% 1.54%
Lease advantage over borrowing $162,879 $151,368 $285,856
Marui Textile
NPV of loan $824,327 $789,470 $724,721
NPV of lease $679,688 $652,919 $531,705
IRR of lease 15.09% 15.09% 4.57%
Lease advantage over borrowing $144,639 $136,550 $193,016
Return
D
25.0%
12.5%
9.38%
$649,585
11.25%
$161,280
$509,633
11.87%
$139,952
$169,344
$535,114
13.50%
$114,470
$177,408
$560,596
15.15%
$88,989
$185,472
$586,077
16.83%
$63,507
$811,437
$537,187
1.54%
$274,249
$704,592
$515,068
4.57%
$189,524