Normal finance 0 1 2 3 4 5

300 -300
-3 -10 -9.9 -9.9 -9.9 -9.9
200 -200
497 -509.9
$26.01

Corporate finance 300

-6 -300
-7 -12.6 -12.6 -12.6 -12.6 -12.6
287 -312.6
($28.63)
210 2.6 2.7 2.7 2.7 -197.3

$54.64

0 1 2 3 4
-20
15.8 15.8 15.8 15.8
-10 -10 -10 -10
5.8 5.8 5.8 5.8
-7.2 -7.2 -7.2 -7.2
-1.4 -1.4 -1.4 -1.4

-20 8.6 8.6 8.6 8.6

$1.03
5% 2.2
0.77
2.2
0.17

-1 0 1 2
-100 -100
40 40
-20 -20
EBIT 20 20
Int.exp -3.6 -7.2 -7.2 -7.2

EBT -103.6 -107.2 12.8 12.8

 EB -103.6 -107.2 8.96 8.96
tax-shield 2.16 2.16
NI -103.6 -107.2 11.12 11.12

Net cash flow -43.6 -47.2 31.12 31.12

NPV@10% $ 63.18

IRR 25%

Completion guarantee $ 12.96

 Normal finance 0 1 2 3 4 5
100 -100
-1 -9.9 -9.9 -9.9 -9.9 -9.9
200 -200
299 -309.9
($0.97)

Corporate finance 300

-6 -300
-7 -10.5 -10.5 -10.5 -10.5 -10.5
287 -310.5
($26.28)
12 0.6 0.6 0.6 0.6 0.6

$25.31

5 6 7 8 9 10
10
15.8 15.8 15.8 15.8 15.8
-10 -10 -10 -10 -10
5.8 5.8 5.8 5.8 5.8
-7.2 -7.2 -5.4 -3.6 -1.8
-1.4 -1.4 0.26 1.43 2.6
-20 -20 -20 -20
8.6 8.6 -9.74 -8.57 -7.4 -10

3 4 5 6 7 8 9 10
50
40 40 40 40 40 40 40 40
-20 -20 -20 -20 -20 -20 -20 -20
20 20 20 20 20 20 20 20
-7.2 -7.2 -6.3 -5.4 -4.5 -3.6 -2.7 -1.8
-15 -15 -15 -15 -15 -45
12.8 12.8 -1.3 -0.4 0.5 1.4 2.3 -26.8
 8.96 8.96 -1.3 -0.4 0.35 0.98 1.61 -26.8
2.16 2.16 1.89 1.62 1.35 1.08 0.81 0.54
11.12 11.12 0.59 1.22 1.7 2.06 2.42 -26.26

31.12 31.12 20.59 21.22 21.7 22.06 22.42 -6.26 50

 -1 0 1 2 3 4 5 6
-50 -50
35 35 15 15 25 25 25 30
Loan balan 17.5 53.375 73.54375
Interest 0.875 2.66875 3.677188
 7 8 9 10

30 30 30 30