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.
Other invest.(non-depreciable)=
Discount rate used=
LOAN DETAILS
WORKING CAPITAL
Borrowing (if any) =
Initial Investment in Work. Cap=
Interest rate on loan=
Working Capital as % of Rev=
Time period for loan =
Salvageable fraction at end=
Type(1:Term;2:balloon)=
GROWTH RATES
1
2
3
4
5
6
7
8
9
10
Revenues
Do not enter
Fixed Expenses
Do not enter
Default: The fixed expense growth rate is set equal to the growth rate in revenues by default.
YEAR
0
INITIAL INVESTMENT
Investment
- Tax Credit
Net Investment
+ Working Cap
+ Opp. Cost
+ Other invest.
Initial Investment
- Borrowing
Net Initial Inv
SALVAGE VALUE
Equipment
Working Capital
OPERATING CASHFLOWS
Lifetime Index
Revenues
-Var. Expenses
- Fixed Expenses
BTCF
- Depreciation
- Interest
Taxable Income
-Tax
Net Income
+ Depreciation
ATCF
- ? Work. Cap
- Princ. Rep.
NATCF
Discount Factor
Discounted CF
Investment Measures
NPV =
IRR =
ROE =
LOAN DETAILS
Loan life index
Total Payment
Interest payment
Princ. repaid
Rem. Balance
BOOK VALUE & DEPRECIATION
Book Value (beginning)
Depreciation
BV(ending)
- Debt Outstanding
BV: Equity
ANALYTICAL STATISTICS
PV: Net Contribution
WHAT IF?
Revenues
NPV
SOME SUGGESTIONS FOR OTHER SENSITIVITY ANALYSES
1. Change the Variable cost as a % of Revenues
2. Change Fixed costs in $ amounts
3. Change the lifetime of the project
4. Change the depreciation method
5. Change the working capital as % of revenues
6. Change working capital salvage %
7. Change borrowing amount
8. Change the discount rate
Automatic recalculation
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