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Use all of the information you caiculated above to in he following tabies ome Statement Measures iSm Expected Revenues LESS Cash Operating Expenses 10 19 (125)(5) EBIT ie, operating profit) (125) Non-GAA NOPAT EBIT x (1-) Operating Cash Flow LESS change in Net Working Ca Free Cash Flow h Flow Measu 19 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $11.20 $17.20 S17.20 $17.20 S17.20 $17.20 S17.20 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 S17.20 $17.20 $17.20 s17.20 $17.20 S17.20 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 s17-20 $17.20 S17.20 $17.20 S17.20 $17.20 Net Working Capital Gross PP&E 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 Net PP&E 120 114 108 102 72 We can now finally do some basic analysis on this project: (i) what is the Net Present Value of this projects free cashflow, if we value them using a required rate of return of 10%? Note: you must answer using a oded answers will not be accepted. But you may calculate this in whatever way makes the most sense to you. NPV of projecis free cash flows $21,43 U) What is the IRR of this projects free cash flow? Note: you must answer using a tomula, nard-coded answers will not be accepted. But you may calculate this in whatever way makes the most sense to you IRR of projects free cash flows (k) What is the payback period of this project, just in case Compass wants to know? Note: you may solve this problem in whatever way makes the most sense to you. Payback Period of Project: will this investment create value for compass minerals, if we evaluate it using a required rate of return of 10%? (l) AnswerExplanation: It will create value as the NPV of the free cash flows would be $21.43m (m) Would you recommend that Compass Minerals approve this project? Answer yes/no, and explain your reasoning. AnswerlExplanation:

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Answer #1
i NPV 21.43329598
j IRR 12.44%
k Payback 7.26744186 years
m Yes Since NPV is positive

WORKINGS

Year FCF Cumulative FCF
0 -125
1 17.2 17.2
2 17.2 34.4
3 17.2 51.6
4 17.2 68.8
5 17.2 86
6 17.2 103.2
7 17.2 120.4
8 17.2 137.6
9 17.2 154.8
10 17.2 172
11 17.2 189.2
12 17.2 206.4
13 17.2 223.6
14 17.2 240.8
15 17.2 258
16 17.2 275.2
17 17.2 292.4
18 17.2 309.6
19 17.2 326.8
20 17.2 344

AutoSave Book1 Excel (Product Activation Failed) Sign in File Insert Page Layout Formulas Data Review View Help Tell me what you want to do 수 Share Home Calibri 8 General 田FF Conditional Fornat as Cell Insert Delete Fornat FormattingTable Styles- 、. Sort & Find & Editing Paste . 녀 . 의 _ . 로三들經垣臣 Merge & Center-5 . % , : Filter Select Clipboard Alignment Number Stles Cells ЕЗ ㅏ다 Cumulative FCH NPV IRR Payback Yes Since NPV is p NPV(10%,C4: C23)4c3 IRR(C3:C23) 7+(-C3-D10)/C11 years 125 17.7 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 17.2 -DG+CG -D61C7 -D8+C9 91C10 10+C11 -D11+012 -D12 C13 :D134C 14 -D14 C15 -D15 C16 10 14 12 13 14 15 16 17 18 -D17+C18 -D181C19 19 20 -D20+021 -D211C22 23 Sheet1 Sheet3 Sheet2 Ready + 100 cy. ENG 6:58 AM

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