CHAPTER 14: CAPITAL BUDGETING SUGGESTED SOLUTIONS SOLUTION TO MULTIPLE CHOICE QUESTIONS 14.1 14.2 14.3 14.4 14.5
(a) (a) (e) (a) (c)
14.6 14.7 14.8 14.9 14.10
(d) (c) (d) (a) (c)
END OF CHAPTER QUESTIONS
14.1 Capital budgeting is planning the use of funds for profitable projects requiring investment of relatively large amounts of money into non-current assets. Because of the long term nature of the investment, projections of expected future cash flows from the investment are uncertain, but nevertheless need to be estimated. Quantitative and qualitative techniques are then used to make a judgement as to whether the project is likely to be profitable. Three commonly used quantitative techniques that are used are: Payback [Total payback, and/or payback period and/or discounted payback] Net present value [NPV] Internal Rate of Return [IRR]
4.2 Projects which are mutually exclusive require a choice between one or the other as they usually achieve the same objective. For example a decision between two types of machines which manufacture the same product, but which may have other features which distinguish them. Projects which are independent may all be selected, the only other significant criteria for selection being that they achieve the required rate of return and that there are funds available.
14.3 Acquiring a large number of very small machines, where the number originally planned could be fewer.
A project to build a factory of a certain size, where it could be decided to build a smaller
factory A project to manufacture a certain output which could be reduced.
14.4 The payback period and the dicsounted payback period will be identical only if the rate applied to discount the cash flows is zero per cent.
14.5 Whenever the discount rate is reduced, the present value of the cash flows becomes larger
14.6 The Internal Rate of Return is by definition, the rate at which the net present value is zero. In the calculation, the rate is “forced” to be the rate which gives a zero net present value.
14.7 Any expense which SARS permits as a deduction, reduces the tax payable. If that expense was not incurred, more tax would have been paid. Any addition expense permitted for tax
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purposes, shields the taxable income. The real cost to the company is therefore the after tax cost.
14.8 A company pays tax on its taxable income as assessed by SARS. In the event of a company making a loss on its assessment by SARS, this is know as an assessed loss. This may be carried forward to future years. So for example a company which has an assessed loss of R1m and then is assessed to have taxable income of R3m in the next period, will only pay tax on R2m (the taxable income less the assessed loss). This is of significance in capital budgeting because while a company has a an assessed loss, there is no tax shield from additional costs incurred in that year. The tax shield will only become operative when the company moves into a taxable situation. It is thus a timing issue only – but as the timing of cash flows is significant in calculating net present values, it must be taken into consideration.
14.9 SARS permits companies to use a rate for writing off depreciation (wear and tear allowance) for the purpose of calculating its taxable income. The company may use a different rate for accounting purpose in calculating its net profit. Whenever an asset is sold, SARS is interested to know – based on the tax value of the asset – whether a profit or loss was made on disposal. If the asset was sold at a profit, SARS will levy tax on that profit (recoupment – because it has allowed that amount to shield previous taxable income). If a loss is made on disposal, SARS will permit that loss to be deducted from taxable income (scrapping allowance).
14.10 The fact that one rate of depreciation may be used for accounting purposes and a different rate (the wear and tear allowance as determined by the tax legislation) results in different after tax profits in the accounting records when compared with the tax records. It also gives rise to timing differences in the cash flows which need to be accurately recorded when setting up the net present value calculations.
14.11 When dealing with independent projects (they could all be selected), it makes sense to rank them from the most to the least profitable – assuming they all meet the minimum requirement of having a positive net present value. The profitability index is simply the Present Value divided by the immediate outlay. Obviously the most profitable projects will have the higher profitability index and should be selected in this rank order.
14.12 5 6 0 1 2 3 4 Cash inflows 800,000 960,000 1,152,000 1,382,400 1,658,880 Cash outflows 600,000 3,000,000 Payback required 3,600,000 Cumulative payback 800,000 1,760,000 2,912,000 4,294,400 5,953,280 Cumulate payback less initial investment -2,800,000 -1,840,000 -688,000 694,400 Payback period 4.5 years
14.13
FORGE LTD FORGE LTD Cash inflows Machine Recoupment by SARS Net Cash Flows 15% Present Value Factor Present Value of Cash Flows Net Present Value Internal Rate of Return
©
0 -12,000,000 -12,000,000 1.0000 -12,000,000 -R 1,525,766
1 2 3 4,000,000 4,000,000 4,000,000 3,000,000 -960,000 4,000,000 4,000,000 6,040,000 0.8696 0.7561 0.6575 3,478,261 3,024,575 3,971,398
7.69% [Calculated using Excel]
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14.14
ASSENT LTD
(a)
(b) (c)
14.15
ASSENT LTD: PROJECT A Cash Flows Cumulative Cash Flows 15% Present Value Factor Present Value of Cash Flows Net Present Value
0 -175,000 -175,000 1.0000 -R 175,000 -R 130,963
1 10,000 -165,000 0.8696 R 8,696
2 25,000 -140,000 0.7561 R 18,904
ASSENT LTD: PROJECT B Cash Flows Cumulative Cash Flows 15% Present Value Factor Present Value of Cash Flows Net Present Value
0 -20,000 -20,000 1.0000 -R 20,000 -R 5,551
1 10,000 -10,000 0.8696 R 8,696
2 5,000 -5,000 0.7561 R 3,781
3 4 25,000 375,000 -115,000 260,000 0.6575 0.5718 R 16,438 R 214,407
3 3,000 -2,000 0.6575 R 1,973
4 1,000 -1,000 0.5718 R 572
Project A pays back during the 4th year, while Project B never pays back. On this basis, Project B would never be selected and Project A may be selected if the payback criterion is greater than 3 years. Discounted payback rule will indicate that neither project ever pays back and that both should be rejected. Net present value rule at 15% indicates that both projects offer a negative net present value and that both should be rejected.
SERRANDA LTD
SERRANDA LTD 0 1 2 3 4 5 Cash Flows -5,000,000 1,400,000 2,000,000 2,500,000 1,200,000 1,000,000 900,000 2,100,000 3,100,000 Cumulative Cash Flows -5,000,000 -3,600,000 -1,600,000 15% Present Value Factor 1.0000 0.8696 0.7561 0.6575 0.5718 0.4972 Present Value of Cash Flows -R 5,000,000 R 1,217,440 R 1,512,200 R 1,643,750 R 686,160 R 497,200 59,550 556,750 Cumulative Discounted Cash Flows -5,000,000 -3,782,560 -2,270,360 -626,610 R 556,750 Net Present Value 19.8% [Calculated using Excel] Estimated Internal Rate of Return
(a) (b) (c) (d)
14.16
Payback is during the third year (around 2 years and 8 months) Discounted payback is during the fourth year (around 3 years and 11 months) Net present value is positive at R556 750 Internal rate of return must be higher than 15%, because it has a positive net present value.
CBG LTD
CBG LTD 0 1 2 3 4 5 Cash Flows -1,500,000 400,000 700,000 500,000 200,000 200,000 Cumulative Cash Flows -1,500,000 -1,100,000 -400,000 100,000 300,000 500,000 15% Present Value Factor 1.0000 0.8696 0.7561 0.6575 0.5718 0.4972 Present Value of Cash Flows -R 1,500,000 R 347,840 R 529,270 R 328,750 R 114,360 R 99,440 Cumulative Discounted Cash Flows -1,500,000 -1,152,160 -622,890 -294,140 -179,780 -80,340 -R 80,340 Net Present Value 12.4% [Calculated using Excel] Estimated Internal Rate of Return (a) (b) (c) (d)
Payback is during the third year (around 2 years and 10 months) Discounted payback is never achieved at 15%. (It would be at 12.4% - the IRR, after 5 years) Net present value is negative at R80 340 Internal rate of return must be lowerr than 15%, because it has a negative net present value at 15%..
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14.17
NOVUS LTS
YEAR
NATURE OF CASH FLOW
0 Investment required 1 Net cash inflow 2 Net cash inflow 3 Net cash inflow 4 Net cash inflow (a) TOTAL CASH INFLOWS
VIRGO -R 3,000 R 1,600 R 1,400 R 800 R 200 R 4,000
(b) PAYBACK PERIOD
YEAR 0 1 2 3 4
NATURE OF CASH FLOW Investment required Net cash inflow Net cash inflow Net cash inflow Net cash inflow
VIRGO CUM PAYBACK
-R 3,000 -R 3,000 -R 1,400 R 300 R 0 R 1,000 R 800 R 1,400 R 1,000 R 2,100 R 4,800 2 YEARS
12% PV VIRGO -3,000 1,429 1,116 570 127
(e)
-R 3,000 -R 2,700 -R 1,700 -R 300 R 1,800 3Y2M
PV TABLE 12% 1 0.893 0.797 0.712 0.636
R 397.30 2 Y 10 M
R 241.40 16.92%
LEO CUM PAYBACK
PV OF CASH FLOWS VIRGO CUM LEO CUM 12% PV DISCOUNTED DISCOUNTED LEO PAYBACK PAYBACK -3,000 -3,000 -3,000 -1,571 268 -2,732 -455 797 -1,935 114 997 -938 397 241 1,336
R 241.40 (c ) DISCOUNTED PAYBACK (d) NET PRESENT VALUE IRR
LEO
3Y8M R 397.30 16.76% [Calculated using Excel]
Mutually exclusive (only one project may be accepted), with payback as the criterion, only Virgo will be accepted, provided the payback period required is not less than 2 years. Independent (both may be accepted), Virgo is preferable to Leo, but both may be accepted provided the payback period requirement is not less that 3 years and 2 months. If for example the payback period requirement is 3 years, then only Virgo would be accepted. Only Leo would be accepted. The initial outlays are identical at R3 000 and Leo offers the higher net present value
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14.18
PRODURITY
YEAR
NATURE OF CASH FLOW
0 Investment required 1 Net cash inflow 2 Net cash inflow 3 Net cash inflow 4 Net cash inflow (a) TOTAL CASH INFLOWS (b) PAYBACK PERIOD
YEAR 0 1 2 3 4
NATURE OF CASH FLOW Investment required Net cash inflow Net cash inflow Net cash inflow Net cash inflow
(c ) DISCOUNTED PAYBACK (d) NET PRESENT VALUE IRR
(e)
MAPLE -R 7,000 R 1,000 R 2,000 R 3,000 R 4,000 R 10,000
14% PV MAPLE -R 7,000 R 877 R 1,538 R 2,025 R 2,368 R -192.00
MAPLE CUM PAYBACK
-R 7,000 -R 7,000 -R 6,000 R 4,000 -R 4,000 R 3,000 -R 1,000 R 2,000 R 3,000 R 1,000 R 10,000 3Y3M
OAKCUM PAYBACK -R 7,000 -R 3,000 R0 R 2,000 R 3,000 2 YEARS
PV OF CASH FLOWS MAPLE CUM OAK CUM 14% PV DISCOUNTED DISCOUNTED OAK PAYBACK PAYBACK -R 7,000 -R 7,000 -R 7,000 -R 6,123 R 3,508 -R 3,492 -R 4,585 R 2,307 -R 1,185 R 165 -R 2,560 R 1,350 -R 192 R 592 R 757 R 757.00 NEVER AT 14%
R -192.00 12.91%
OAK
PV TABLE 14% 1 0.877 0.769 0.675 0.592
2 Y 10 M R 757.00 20.53% [Calculated using Excel]
Independent (both may be accepted), Oak is preferable to Maple, but both may be accepted provided the payback period requirement is not less that 3 years and 3 months. If for example the payback period requirement is 3 years, then only Oak would be accepted. Mutually exclusive (only one project may be accepted), with net present value as the criterion, only Oak will be accepted as the net present value is positive and considerably higher than that of Maple (which, in any event is negative, thus disqualifying itself from selection) Only Oak would be accepted. The initial outlays are identical at R7 000 and Oak offers the only and higher net present value. Maple is not acceptable because it has a negative net present value at 14%, The IRR calculated at close to 13% does make it a marginal project, that is, there may be other considerations, or the numbers may be reworked and further consideration should be given to its merits.
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14.19 (a)
BLENCATHRA LTD Accounting Income Statement INCOME STATEMENTS OF BLENCARTHA DATA
Sales units Sales revenue Variable costs Labour Material Distribution Contribution Fixed cost cash flows Depreciation Net Profit before Tax Taxation Reported Net Profit after tax
1
2
200,000 3,400,000 2,600,000 1,200,000 1,000,000 400,000 800,000 140,000 25% 225,000 435,000 30% 130,500 304,500
R 17.00 R 13.00 R 6.00 R 5.00 R 2.00 R 4.00
3
250,000 4,250,000 3,250,000 1,500,000 1,250,000 500,000 1,000,000 140,000 225,000 635,000 190,500 444,500
4
300,000 90,000 5,100,000 1,530,000 3,900,000 1,170,000 1,800,000 540,000 1,500,000 450,000 600,000 180,000 1,200,000 360,000 140,000 140,000 225,000 225,000 835,000 -5,000 250,500 -1,500 584,500 -3,500
(b) Calculation of Cash Flow from Operations 0 Net Profit before Tax Add back Depreciation Less Wear and Tear Allowance Taxable Income SARS Tax payable Net Profit after Tax payable Add back non cash flow Cash flow from operations (c ) Calculation of Project Cash flows Cash flow from operations Working Capital Machine CASH FLOWS
1
50%
-80,000 -900,000 -980,000
Payback (d) PV FACTOR AT 16% NET PRESENT VALUE (e) Internal Rate of Return [per Excel]
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1 -980,000 698,568
2
3
4
435,000 225,000 450,000 210,000 63,000 147,000 450,000 597,000
635,000 225,000 450,000 410,000 123,000 287,000 450,000 737,000
835,000 225,000
-5,000 225,000
1,060,000 318,000 742,000 0 742,000
220,000 66,000 154,000 0 154,000
597,000
737,000
742,000
597,000
737,000
0 742,000
154,000 80,000 21,000 255,000
-383,000
354,000
0.8621 514,655
0.7432 547,711
0.6407 475,368
0.5523 140,834
51%
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This is an alternative and shorter method for establishing the NPV. It is useful to take both approaches to be sure that there have been no items omitted. Note that rounding errors may occur if tables are used with only 3 or four decimal places.
BLENCATHRA LTD: CASH FLOWS FOR "MOOD" PROJECT YEAR Machine Working capital Cash flow from sales Tax on sales cash flow Depreciation tax shield Disposal of asset Tax on disposal CASH FLOWS Present value factor 16% Present value per year NET PRESENT VALUE
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0 -900000 -80000
1
2
3
660,000 860,000 1,060,000 -198,000 -258,000 -318,000 135,000 135,000
-980,000 1 -980,000 698,568
597,000 0.8621 514,655
737,000 0.7432 547,711
4 R 80,000 220,000 -66,000
R 30,000 -9000 742,000 255,000 0.6407 0.5523 475,368 140,834
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14.20
LAMBARDA LTD
(a) & (b)
INCOME STATEMENT OF LAMBARDA LTD 0 1 2 Sales units 1,350 1,900 Sales revenue 297,000 418,000 Variable costs 101,250 142,500 Contribution 195,750 275,500 Fixed cost cash flows 90,000 90,000 Wear and Tear 125,000 125,000 Taxable cash flows -19,250 60,500 Taxation -5,775 18,150 NET PROFIT -13,475 42,350 ADD BACK NON CASH FLOW 125,000 125,000 NET CASH FLOW FROM SALES 111,525 167,350 Working Capital -50,000 Machine -250,000 CASH FLOWS -300,000 111,525 167,350 PV FACTOR AT 15% 1 0.8696 0.7561 -300,000 96,982 126,533 NET PRESENT VALUE 84,110
3 2,500 550,000 187,500 362,500 90,000 0 272,500 81,750 190,750 0 190,750 50,000 3,500 244,250 0.6575 160,594
(c)
The payback period is just less than 2 years excluding the working capital and just over 2 years if it is included.
(d)
The net present value is R84 110 using the required rate of return of 15%
(e)
The estimated Internal Rate of Return is 25%.
Alternative format for workings
CASH FLOWS LAMBARDA 0 YEAR -250,000 Machine -50,000 Working capital Cash flow from sales Tax on sales cash flow Depreciation tax shield Disposal of asset Tax on disposal -300,000 CASH FLOWS Present value factor 15% 1 -300,000 Present value per year 84,110 NET PRESENT VALUE INTERNAL RATE OF RETURN 29.2%
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1
2
3
50,000 105,750 185,500 272,500 -31,725 -55,650 -81,750 37,500 37,500 5,000 -1,500 111,525 167,350 244,250 0.8696 0.7561 0.6575 96,982 126,533 160,594 [Calculated using Excel]
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14.21
REPLAY LTD
REPLAY LTD Cash inflows Machine Recoupment by SARS Net Cash Flows 15% Present Value Factor Present Value of Cash Flows Net Present Value
0 -15,000,000 -15,000,000 1.0000 -15,000,000 -R 2,242,541
Internal Rate of Return
14.22
1 2 3 5,000,000 5,000,000 5,000,000 3,000,000 -960,000 5,000,000 5,000,000 7,040,000 0.8696 0.7561 0.6575 4,347,826 3,780,718 4,628,914
6.26% [Calculated using Excel]
NANUCCI LTD DATA FOR CALCULATIONS
NANUCCI LTD: PROJECT 1 Book value of Equipment Tax Value of Equipment Outlay (exclude sunk costs) Net Operating Cash Flows Tax on net operating cash flows Wear and Tear Tax Shield Cash on disposal of equipment Recoupment of profit on disposal Cash flows for the project Discount Rate Present Value Factor Present Value of Cash Flows Net Present Value NANUCCI LTD: PROJECT 2 Book value of Equipment Tax Value of Equipment Outlay (exclude sunk costs) Net Operating Cash Flows Tax on net operating cash flows Wear and Tear Tax Shield Cash on disposal of equipment Recoupment of profit on disposal Cash flows for the project Discount Rate Present Value Factor Present Value of Cash Flows Net Present Value (Cost)
Cost increase
Deprec iation
Wear and Tear
Tax rate
110%
75%
20%
30%
0 120,000 120,000
1 90,000 96,000
2 67,500 72,000
3 50,625 48,000
60,000 -18,000 7,200
66,000 -19,800 7,200
72,600 -21,780 7,200 50,625 -788 107,858 16% 0.6407 R 69,104
-120,000
-120,000
49,200 53,400 18% 16% 1.0000 0.8475 0.7432 -R 120,000 R 41,697 R 39,687 R 30,488 0 30,000 30,000
1 22,500 24,000
2 16,875 18,000
3 12,656 12,000
4 9,492 6,000
0 0 1,800
0 0 1,800
0 0 1,800
0 0 1,800 9,492 -1,048 10,245 16% 0.5523 R 5,658
-30,000
-30,000
1,800 1,800 1,800 18% 16% 16% 1.0000 0.8475 0.7432 0.6407 -R 30,000 R 1,526 R 1,338 R 1,153 -R 25,983
(c )
Project 2 seems considerably better in every respect, offering a large increase in annual cash flows and offering a positive net present value.
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14.23
APPLICATION OF CAPITAL BUDGETING TECHNIQUES 0 CASH FLOW FROM OPERATIONS Sales units Selling Price per unit Sales revenue Expenses Profit Tax at 30% Profit after Tax Add back Depreciation Net Operating Cash flow
20.3 7,000 340 2,380,000 1,850,000 530,000 159,000 371,000 1,200,000 1,571,000
20.4 8,000 320 2,560,000 1,960,000 600,000 180,000 420,000 1,200,000 1,620,000
20.5 6,000 350 2,100,000 2,100,000 0 0 0 1,200,000 1,200,000
CASH FLOWS FOR CAPITAL BUDGETING DECISION 0 1 2 3 YEAR -3,600,000 Machine -600,000 600,000 Working capital 1,571,000 1,620,000 1,200,000 After tax operating cash flows 500,000 Disposal of asset -20,000 -22,000 -24,200 Opportunity cost -150,000 Tax on disposal -3,600,000 951,000 1,598,000 2,125,800 CASH FLOWS Present value factor 12% 1 0.8929 0.7972 0.7118 -3,600,000 849,148 1,273,926 1,513,144 Present value per year 36,218 NET PRESENT VALUE Payback period flows Payback period time in years Internal rate of return
©
-3,600,000 -2,649,000 -1,051,000
say 13 %
1,074,800 2.51
12.51%
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14.24
PHENIX (PTY) LTD [Megan Ptolmy’s Luminar Lockers Project]
(a) FINANCIAL YEAR END
PHENIX (PTY) LTD ITEMS TO BE CONSIDERED
20.3
20.4
20.5
20.6
TOTAL
Projected Sales Units
1,700
2,000
2,600
1,200
7,500
Selling price per unit
6,000
5,900
5,900
6,000
5,950
Variable Costs per unit
4,000
4,100
4,200
4,400
16,700
Unit Contribution
2,000
1,800
1,700
1,600
1,775
Total Contribution
3,400,000
3,600,000 4,420,000 1,920,000
13,340,000
Total Fixed Costs
-2,575,000
-2,575,000 -2,575,000 -2,575,000
-10,300,000
Cash Fixed Costs
-1,600,000
-1,600,000 -1,600,000 -1,600,000
Depreciation
-975,000
Net Income
825,000
Break-even units [TFC/Contrib]
-975,000
-975,000
-975,000
1,025,000 1,845,000
-655,000
1,288
1,431
1,515
1,609
5,803
Break-even analysis offers a benchmark against which to measure the "margin of safety" relative to the projected sales units. If the projected sales are not significantly higher than the break-even number of units, the project is more risky. Break-even may be measured using Accounting, Cash or Present Value (b) and (c) PHENIX LTD ITEMS TO BE CONSIDERED Projected Sales Units Selling price per unit Variable Costs per unit Unit Contribution Total Contribution Fixed Costs Cash from Operating Income Depreciation Net profit Tax Priofit after tax Add back depreciation Cash flows from operations Cost Tax shields Working Capital requirement Opportunity Costs (Rent) Scrap value Recoupment Annual Net Cash Flow of Project
NOW
20.3 1,700 6,000 4,000 2,000 3,400,000 -1,600,000 1,800,000 -975,000 825,000 247,500 577,500 975,000 1,552,500
FINANCIAL YEAR END 20.4 20.5 20.6 2,000 2,600 1,200 5,900 5,900 6,000 4,100 4,200 4,400 1,800 1,700 1,600 3,600,000 4,420,000 1,920,000 -1,600,000 -1,600,000 -1,600,000 2,000,000 2,820,000 320,000 -975,000 -975,000 -975,000 1,025,000 1,845,000 -655,000 307,500 553,500 0 717,500 1,291,500 -655,000 975,000 975,000 975,000 1,692,500 2,266,500 320,000
-3,900,000 247,500
-247,500
196,500 550,000 -33,000 -36,300 -39,930 -43,923 486,203 0 -145,861 -R 4,450,000 R 1,767,000 R 1,408,700 R 2,226,570 R 1,362,919 -550,000
* "…the assessed loss will be overcome by taxable income in the financial year 2004" PHENIX LTD PVIF @ 12% [as provided in the DISCOUNTED CASH FLOWS NET PRESENT VALUE PAYBACK DISCOUNTED PAYBACK INTERNAL RATE OF RETURN
FINANCIAL YEAR END 20.3 20.4 20.5 1 0.8929 0.7972 0.7118 -R 4,450,000 R 1,577,754 R 1,123,016 R 1,584,873 701,777 middle 20.5 -2,683,000 -1,274,300 952,270 early 20.6 -2,872,246 -1,749,230 -164,358 19.36% NOW
20.6 0.6355 R 866,135 2,315,189 701,777
(d) (e)
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14.25
SPIRAL (PTY) LTD [Moodglow Project]
SPIRAL (PTY) LTD: "MOODGLOW" 0 TAX IMPACT OF MOODGLOW Wear and Tear Allowance Operating Cash Flows "Moodglow" taxable amount Tax payable
1
0.35
0 "MOODGLOW" CASH FLOWS Cost -2,000,000 Working Capital -450,000 Recovery of WC Operating Cash Flows Residual Valueafter recoupment Tax on Project cash flows Net Cash Flows -2,450,000 TECHNIQUE FOR DECISION Cash Flows NPV FACTOR at 14% PV CASH FLOWS (14%) NET PRESENT VALUE IRR [per Excel] CUM CASH FLOWS PAYBACK
0 -2,450,000 1.0000 -2,450,000 3,464,007 45.5%
-400,000 900,000 500,000 175,000 1
2 -400,000 900,000 500,000 175,000 2
3
4
-400,000 2,560,000 2,160,000 756,000
-400,000 3,400,000 3,000,000 1,050,000
3
4
5
6
-400,000 3,600,000 1,800,000 3,200,000 1,800,000 1,120,000 630,000 5
6
-150,000 900,000
900,000
-175,000 575,000
-175,000 725,000
1 575,000 0.8772 504,390
600,000 3,600,000 1,800,000 325,000 -756,000 -1,050,000 -1,120,000 -630,000 1,804,000 2,350,000 2,480,000 2,095,000 2,560,000
3,400,000
2 3 4 5 6 725,000 1,804,000 2,350,000 2,480,000 2,095,000 0.7695 0.6750 0.5921 0.5194 0.4556 557,888 1,217,700 1,391,435 1,288,112 954,482
-1,875,000 -1,150,000
654,000 3,004,000 2.6 years
5,484,000 7,579,000
(e) (f)
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