CapBudgWS
Equity Analysis of a Project
INPUT SHEET: USER ENTERS ALL BOLD NUMBERS
INITIAL INVESTMENT CASHFLOW DETAILS DISCOUNT RATE
Initial Investment= Revenues in year 1= Approach(1:Direct;2:CAPM)=
Opportunity cost (if any)= Var. Expenses as % of Rev= 1. Discount rate =
Lifetime of the investment Fixed expenses in year 1= 2a. Beta
Salvage Value at end of project= Tax rate on net income= b. Riskless rate=
Deprec. method(1:St.line;2:DDB)= If you do not have the breakdown of fixed and variable c. Market risk premium =
Tax Credit (if any )= expenses, input the entire expense as a % of revenues. d. Debt Ratio =
Other invest.(non-depreciable)= e. Cost of Borrowing =
Discount rate used=
WORKING CAPITAL
Initial Investment in Work. Cap=
Working Capital as % of Rev=
Salvageable fraction at end=
GROWTH RATES
1 2 3 4 5 6 7 8 9 10
Revenues Do not enter 10.00% 10.00% 10.00% 10.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Fixed Expenses Do not enter
Default: The fixed expense growth rate is set equal to the growth rate in revenues by default.
YEAR
0 1 2 3 4 5 6 7 8 9 10
INITIAL INVESTMENT
Investment
- Tax Credit
Net Investment
+ Working Cap
+ Opp. Cost
+ Other invest.
Initial Investment
SALVAGE VALUE
Equipment
Working Capital
OPERATING CASHFLOWS
Lifetime Index
Revenues
-Var. Expenses
- Fixed Expenses
EBITDA
- Depreciation
EBIT
-Tax
EBIT(1-t)
+ Depreciation
- ∂ Work. Cap
NATCF
Discount Factor
Discounted CF
Investment Measures
NPV =
IRR =
ROC =
BOOK VALUE & DEPRECIATION
Book Value (beginning)
Depreciation
BV(ending)