Non-discounted

FCIL= 150.0 Land 10.0

Salvage value 10.0 WCI 30.0

End of Year (k) Investment dk FCIL-Σdk R COMd

0.0 10.0 0.0 150.0
1.0 90.0 0.0 150.0
2.0 90.0 0.0 150.0
3.0 42.9 107.1 75.0 30.0
4.0 30.6 76.5 75.0 30.0
5.0 21.9 54.7 75.0 30.0
6.0 15.6 39.0 75.0 30.0
7.0 11.2 27.9 75.0 30.0
8.0 8.0 19.9 75.0 30.0
9.0 9.9 10.0 75.0 30.0
10.0 0.0 10.0 75.0 30.0
11.0 0.0 10.0 75.0 30.0
12.0 50.0 0.0 10.0 75.0 30.0

1. PBP find the time after start-up for which cumulative cash flow = (L+WC)=-40
= 3.7
2. CCP 217.0 250.0
200.0
3. CCR 2.1
150.0
4. ROROI 14% 100.0
50.0
0.0
$

0.0 1.0 2.0 3.0 4.0 5.0 6.0

-50.0
-100.0
-150.0
-200.0
-250.0
Year
-discounted
Rate of Taxation 0.3

(R-COM-dk)*(1-t)+dk Cash flow Cumulative cash flow

-10.0 -10.0
-90.0 -100.0
-90.0 -190.0
44.4 44.4 -145.6
40.7 40.7 -105.0
38.1 38.1 -66.9
36.2 36.2 -30.7
34.8 34.8 4.1
33.9 33.9 38.0
34.5 34.5 72.5
31.5 31.5 104.0
31.5 31.5 135.5
31.5 81.5 217.0

e cash flow = (L+WC)=-40

50.0

0.0
0.0 1.0 2.0

-50.0
$

2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0
-100.0

-150.0

-200.0
Year
 Discounted
Interest rate
0.1

discounted cash flow

-10.0 -10.0
-81.8 -91.8
-74.4 -166.2
33.3 -132.9
27.8 -105.1
23.6 -81.5
20.4 -61.0
17.9 -43.1
15.8 -27.3
14.6 -12.7
12.1 -0.6
11.0 10.5
26.0 36.4

50.0

0.0
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0

-50.0

-100.0

-150.0

-200.0
Year