Revenue

New PDA
-Lost sales (from old PDA)
-Lost revenue (from old PDA)
Total Revenue

Year 0

Costs
Variable: New PDA
Fixed Cost recovery: Old PDA
Fixed Costs: New PDA
Total Costs

Year 0

0
0
0
0

Net WC
Beg
End
Change in NWC
Net CF
NPV (@ 12% discount) = 13,111,555
NPV (@ 30% discount)
IRR (NPV = 0)

Year 2
28275000
17625000
3480000
7170000
2509500
4660500
3480000
0

Year 3
45000000
24075000
3480000
17445000
6105750
11339250
3480000
0

Year 4
37800000
20975000
3480000
13345000
4670750
8674250
3480000
0

Year 1
Year 2
0
0 21312000
0 21312000 27360000
0 21312000 6048000

Year 3
27360000
36000000
8640000

Year 4
36000000
30240000
-5760000

0
0
0
0
0
0
0
950000
Year 0

Year 2
Year 3
Year 4
34200000 45000000 37800000
17400000
0
0
11475000
0
0
28275000 45000000 37800000

Year 1
Year 2
Year 3
Year 4
0 11470000 14725000 19375000 16275000
0 1800000 1800000
0
0
0 4700000 4700000 4700000 4700000
0 14370000 17625000 24075000 20975000

Year 0
Total Revenue
-Total Costs
-Depreciation (Straight Line)
Earnings before Int & Taxes (Rev - Costs- Depr.)
-Taxes
Net Operating Profit After Taxes (EBIT - Taxes)
Depreciation (Straight Line)
-Capital Expenditure

Year 1
26640000
23200000
16575000
20015000

Year 1
20015000
14370000
3480000
2165000
757750
1407250
3480000
0

-950000 -16424750 2092500 6179250 17914250

Year 5
28800000
0
0
28800000
Year 5
12400000
0
4700000
17100000
Year 5
28800000
17100000
3480000
8220000
2877000
5343000
3480000
1435000
Year 5
30240000
23040000
-7200000
14588000

Revenue
New PDA
-Lost sales (from old PDA)
-Lost revenue (from old PDA)
Total Revenue

=0
0
0
0

Year 0

Year 1
=(360*74000)
=(290*80000)
=(255*65000)
=((G2-(G3-G4)))

Costs
Variable: New PDA
Fixed Cost recovery: Old PDA
Fixed Costs: New PDA
Total Costs

0
0
0
0

=(155*74000)
1800000
4700000
=(G8-G9+G10)

=(155*95000)
1800000
4700000
=(H8-H9+H10)

Total Revenue
-Total Costs
-Depreciation (Straight Line)
Earnings before Int & Taxes (Rev - Costs- Depr.)
-Taxes
Net Operating Profit After Taxes (EBIT - Taxes)
Depreciation (Straight Line)
-Capital Expenditure

Year 0
0
0
0
=(F14-F15-F16)
=(F17*0.35)
=(F17-F18)
=F16
=-21500000

Year 1
=G5
=G11
3480000
=(G14-G15-G16)
=(G17*0.35)
=(G17-G18)
=G16
0

=H5
=H11
3480000
=(H14-H15-H16)
=(H17*0.35)
=(H17-H18)
=H16
0

Net WC
Beg
End
Change in NWC

0
=F2*0.2
0

0
=(G2*0.2)
-5328000

5328000
=(H2*0.2)
=(H24-H25)

6840000
=(I2*0.2)
=(I24-I25)

Net CF

=-F21

=(G19+G20)-(G21)-(-G26)

=(H19+H20)-(H21)-(-H26)

NPV (@ 12% discount) = 13,111,555

NPV (@ 30% discount) = -1,491,908
IRR (NPV = 0) = 27.48

= -21500000
= -21500000
-21500000 =

(-440750)/(1.12)
(-440750)/(1.30)
-440750/(1+IRR)

(6628500)/(1.12^2)
(6628500)/(1.30^2)
6628500/(1+IRR)^2

Year 0

Year 2
=(360*95000)
=(290*60000)
=(255*45000)
=((H2-(H3-H4)))

Year 1

Year 0

Year 3

Year 4

Year 5
=(360*80000)
0
0
=((K2-(K3-K4)))

Year 4

Year 5
=(155*80000)
0
4700000
=(K8-K9+K10)

Year 4

Year 5
=K5
=K11
3480000
=(K14-K15-K16)
=(K17*0.35)
=(K17-K18)
=K16
=4100000+(4100000*0.35)

Year 4
9000000
=(J2*0.2)
=(J24-J25)

Year 5
7560000
0
=(K24-K25)

=(I19+I20)-(I21)-(-I26)

=(J19+J20)-(J21)-(-J26)

=(K19+K20)-(-K21)-(-K26)

(12659250)/(1.12^3)
(12659250)/(1.30^3)
12659250/(1+IRR)^3

(13594250)/(1.12^4)
(13594250)/(1.30^4)
13594250/(1+IRR)^4

(21918000)/(1.12^5)
(21918000)/(1.30^5)
21918000/(1+IRR)^5

=(360*125000)
0
0
=((I2-(I3-I4)))
Year 2

Year 3
=155*125000
0
4700000
=(I8-I9+I10)

Year 2

Year 1

=(360*105000)
0
0
=((J2-(J3-J4)))

=(155*105000)
0
4700000
=(J8-J9+J10)
Year 3

=I5
=I11
3480000
=(I14-I15-I16)
=(I17*0.35)
=(I17-I18)
=I16
0
Year 2

=J5
=J11
3480000
=(J14-J15-J16)
=(J17*0.35)
=(J17-J18)
=J16
0
Year 3

Revenue
New PDA
-Lost sales (from old PDA)
-Lost revenue (from old PDA)
Total Revenue

Year 0
-

Year 1
26,640,000
23,200,000
16,575,000
20,015,000

Year 2
34,200,000
17,400,000
11,475,000
28,275,000

Costs
Variable: New PDA
Fixed Cost recovery: Old PDA
Fixed Costs: New PDA
Total Costs

Year 0
-

Year 1
11,470,000
1,800,000
4,700,000
14,370,000

Year 2
14,725,000
1,800,000
4,700,000
17,625,000

Year 1
20,015,000
14,370,000
3,480,000
2,165,000
757,750
1,407,250
3,480,000
(21,500,000)
-

Year 2
28,275,000
17,625,000
3,480,000
7,170,000
2,509,500
4,660,500
3,480,000
-

Year 0

Total Revenue
-Total Costs
-Depreciation (Straight Line)
Earnings before Int & Taxes (Rev - Costs- Depr.)
-Taxes
Net Operating Profit After Taxes (EBIT - Taxes)
Depreciation (Straight Line)
-Capital Expenditure
Net WC
Beg
End
Change in NWC
Net CF
NPV (@ 12% discount) = 13,111,555
NPV (@ 30% discount)
IRR (NPV = 0)

Year 0
21,500,000

Year 1
5,328,000
(5,328,000)

Year 2
5,328,000
6,840,000
(1,512,000)

10,215,250

9,652,500

Year 3
45,000,000
45,000,000

Year 4
37,800,000
37,800,000

Year 5
28,800,000
28,800,000

Year 3
19,375,000
4,700,000
24,075,000

Year 4
16,275,000
4,700,000
20,975,000

Year 5
12,400,000
4,700,000
17,100,000

Year 3
45,000,000
24,075,000
3,480,000
17,445,000
6,105,750
11,339,250
3,480,000
-

Year 4
37,800,000
20,975,000
3,480,000
13,345,000
4,670,750
8,674,250
3,480,000
-

Year 5
28,800,000
17,100,000
3,480,000
8,220,000
2,877,000
5,343,000
3,480,000
5,535,000

Year 3
1,512,000
9,000,000
(7,488,000)
22,307,250

Year 4
7,488,000
7,560,000
(72,000)
12,226,250

Year 5
72,000
72,000
14,286,000