Investment Analysis for Project A and Project B

298 Words1 Page
Investment Analysis for project A,,,,,,
,,,,,,
Initial Investment ,,,,,,
Cost,"830,000.00",,,,,
Installation cost,"40,000.00",,,,, total investment,"870,000.00",,,,,
,,,,,,
Summarized Profit an Loss Account for Product A,,,,,, year,0,1,2,3,4,5 Revenue (EBIT),,"250,000.00","270,000.00","300,000.00","330,000.00","370,000.00"
Depriciation,,"174,000.00","174,000.00","174,000.00","174,000.00","174,000.00"
EBIT,,"76,000.00","96,000.00","126,000.00","156,000.00","196,000.00"
Tax @ 40%,,"30,400.00","38,400.00","50,400.00","62,400.00","78,400.00"
PAT,,"45,600.00","57,600.00","75,600.00","93,600.00","117,600.00"
,,,,,,
,,,,,,
,,,,,,
Computation of Net cash flow from Project A,,,,,,
,,,,,,
Year,0,1,2,3,4,5
Investment,"-870,000.00",,,,,
PAT,,"45,600.00","57,600.00","75,600.00","93,600.00","117,600.00"
Depriciation,,"174,000.00","174,000.00","174,000.00","174,000.00","174,000.00"
Net working capital,,"90,400.00","90,400.00","90,400.00","90,400.00","90,400.00"
Net Operating Cash Flow,,"310,000.00","322,000.00","340,000.00","358,000.00","382,000.00"
After tax value,,,,,,"240,000.00"
Net Cash Flow,,"310,000.00","322,000.00","340,000.00","358,000.00","622,000.00"
Present value factor @ 14%,1.0000,0.8772,0.7695,0.6750,0.5921,0.5194
Present Value,"-870,000.00","271,932.00","247,779.00","229,500.00","211,971.80","323,066.80"
Net Present Value,"2,154,249.60",,,,,
IRR,14%,,,,,
Payback period,2 years + ((340000 - 238000)/340000 )*12,,,,,
,2years 3.6 months,,,,,

More about Investment Analysis for Project A and Project B

Get Access