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Financial Analysis & Cash Flow Report | PDF | Net Present Value | Cost Of Capital
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Financial Analysis & Cash Flow Report

This document summarizes the financial projections for a new wordyard from 2007 to 2013 including initial costs, operating cash flows, net income, and net present value calculations. It shows revenue increasing over time along with costs of goods sold and expenses. While there is an initial loss, the business becomes profitable by 2008 and generates positive operating and net cash flows each year thereafter, with an internal rate of return of 11% and net present value of $823,400.92 using a discount rate of 9.67%.

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66 views5 pages

Financial Analysis & Cash Flow Report

This document summarizes the financial projections for a new wordyard from 2007 to 2013 including initial costs, operating cash flows, net income, and net present value calculations. It shows revenue increasing over time along with costs of goods sold and expenses. While there is an initial loss, the business becomes profitable by 2008 and generates positive operating and net cash flows each year thereafter, with an internal rate of return of 11% and net present value of $823,400.92 using a discount rate of 9.67%.

Uploaded by

phượng nguyễn thị minh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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2,007 2,008 2,009 2,010

IO (16,000,000) (2,400,000)
Cost of new wordyard (16,000,000) (2,000,000)
Shipping and intallation cost
NWC (400,000) (600,000)

Operating Cash flows


Sale revenue 0 4,000,000 10,000,000 10,000,000
cost of good sold (75% of revenue) 3,000,000 7,500,000 7,500,000
Gross profit 1,000,000 2,500,000 2,500,000
SG&A (5% of revenue) 200,000 500,000 500,000
Net income 800,000 2,000,000 2,000,000
operating saving 2,000,000 3,500,000 3,500,000
minus Depreciation cost 3,000,000 3,000,000 3,000,000

EBIT = EBT (200,000) 2,500,000 2,500,000


minus tax (40%) (80,000) 1,000,000 1,000,000
Net Income (120,000) 1,500,000 1,500,000
Depreciation cost 3,000,000 3,000,000 3,000,000
OCF (before NWC) 2,880,000 4,500,000 4,500,000

NWC (after y0) 10% REVENUE 400,000 1,000,000 1,000,000


Change of NWC 400,000 600,000 -

OCF (after change of NWC) (16,000,000) 480,000 3,900,000 4,500,000

NPV $823,400.92
IRR 11%
2,011 2,012 2,013

10,000,000 10,000,000 10,000,000


7,500,000 7,500,000 7,500,000
2,500,000 2,500,000 2,500,000
500,000 500,000 500,000
2,000,000 2,000,000 2,000,000
3,500,000 3,500,000 3,500,000
3,000,000 3,000,000 3,000,000

2,500,000 2,500,000 2,500,000


1,000,000 1,000,000 1,000,000
1,500,000 1,500,000 1,500,000
3,000,000 3,000,000 3,000,000
4,500,000 4,500,000 4,500,000

1,000,000 1,000,000 1,000,000


- - (1,000,000) recapture of net operating working capital on book

4,500,000 4,500,000 6,580,000 terminal cash flow


1,800,000 worldyard value at sale
720,000 tax (40%)

WACC 9.67%
ing capital on book
Cost of euity ns MKTVAL
24 500 12000 Weight Cost of equity
CL 500 3%
LL 2500 17%
Equity 12000 80% 11.20%
Asset 15000 WACC 9.67%

Risk Free Rate beta MRP


4.60% 1.1 6%
Cost of debt
6.38% 5.78% Total weight
bank loan payable ( LIBOR+%) 500 500 16.67%
Long term debt 2500 2500 83.33%
Market value 3000 100.00%

NPV 15% -2.02


initial outlay 16
NPV of cash flow 13.98

NPV 9.67% 0.82


initial outlay 16 I calculate by calculator:))
NPV of cash flow 16.82
debt of cost % Cost of debt
6.38% 0.64%
5.78% 2.89%
3.53%

alculator:))

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