Initial Outlay = Rp500.000.000
Cash flow of the project =
Year 1 = 237.734.666.667
Year 2 = 276.245.666.667
Year 3 = 351.650.666.667
NPV = 146.823.230.048
(Rp in 000) | ||||
Year | 0 | 1 | 2 | 3 |
Purchase of Equipment | -500000000 | |||
Sales | 800000000 | 943000000 | 990000000 | |
Variable cost | 440000000 | 518650000 | 544500000 | |
Contribution | 360000000 | 424350000 | 445500000 | |
Fixed cost | 40000000 | 46000000 | 52900000 | |
Depreication | 166666666.7 | 166666666.7 | 166666666.7 | |
Administrative expense | 200000 | 200000 | 200000 | |
Net income before tax | 153133333.3 | 211483333.3 | 225733333.3 | |
Less- Tax @ 34% | 52065333.33 | 71904333.33 | 76749333.33 | |
Net income after tax | 101068000 | 139579000 | 148984000 | |
Add- Depreciation | 166666666.7 | 166666666.7 | 166666666.7 | |
Net Income | 267734666.7 | 306245666.7 | 315650666.7 | |
After tax sale proceeds | 66000000 | |||
NWC | -30000000 | -30000000 | -30000000 | |
Net Cash flow | -500000000 | 237734667 | 276245667 | 351650667 |
PVF (15%) | 1 | 0.869565217 | 0.756143667 | 0.657516232 |
PVCF | -500000000 | 206725797.1 | 208881411.5 | 231216021.5 |
NPV | 146823230 |