Monthly Sales Units 600,000

Increase in Sales Volume 0%

Sales Price Per Unit Peso 5
Increase in Sales Price Per Unit 0%
Rawmaterial Cost Per Unit Peso 1.8
Increase in Rawmaterial Cost Per Unit 0%
Monthly Labour Costs Peso 180,000
Increase in Monthly Labour Costs 0%
Monthly Energy Costs Peso 50,000
Increase in Energy Costs 0%
Costs of New Equipment Peso 50,000,000
Resal Value of Equipment after 5 Years Peso 4,000,000
Percentage of Overhead to Sales 1%
Building Rentals Peso 60,000
Average Collection Period Days 45
Average Payment Period Days 36
Yeasr of Straight Lines Depreciation Years 5
WACC 18.20%
Tax Rate 30%
General Administrative and Selling Expe Peso
Erosion Peso 800,000
 0 1
Cost of New Equipment -50,000,000
Resales Value of Equipment
Capital Gain Tax
Annual Sales Revenue 36,000,000
Rawmaterial Costs -12,960,000
Direct Labour Costs -2,160,000
Energy Costs -600,000
Building Rentals (Opportunity Costs) -60,000
Depreciation -10,000,000
General Administrative and Selling Expenses -300,000
Overhead Expenses -360,000
EBIT 9,560,000
Tax Expenses -2,868,000
EBIAT 6,692,000
Depreciation 10,000,000
Erosion of Existing Sales -800,000

Receivables ((Sales/365)*Average Collection period) 4438356.164384

Inventories (One month Material Costs) 1080000
Payables ((Material costs/365)*Average Payment Period) -1278246.57534
Working Capital 4240109.589041
Change in Working Capital -4240109.5890411 0
Project Free Cash Flow -54,240,110 15,892,000
PV of Project Free Cash Flow -54,240,109.6 13,445,008.5
NPV -1,716,060.8
IRR 16.86%
Payback Period ~4 years
Profitability Index 0.97
 2 3 4 5

4,000,000
-1200000
36,000,000 36,000,000 36,000,000 36,000,000
-12,960,000 -12,960,000 -12,960,000 -12,960,000
-2,160,000 -2,160,000 -2,160,000 -2,160,000
-600,000 -600,000 -600,000 -600,000
-60,000 -60,000 -60,000 -60,000
-10,000,000 -10,000,000 -10,000,000 -10,000,000
-300,000 -300,000 -300,000 -300,000
-360,000 -360,000 -360,000 -360,000
9,560,000 9,560,000 9,560,000 9,560,000
-2,868,000 -2,868,000 -2,868,000 -2,868,000
6,692,000 6,692,000 6,692,000 6,692,000
10,000,000 10,000,000 10,000,000 10,000,000
-800,000 -800,000 -800,000 -800,000

4438356.164384 4438356.1644 4438356.164384 4438356.1644

1080000 1080000 1080000 1080000
-1278246.57534 -1278246.5753 -1278246.57534 -1278246.5753
4240109.589041 4240109.589 4240109.589041 4240109.589
0 0 0 4240109.589
15,892,000 15,892,000 15,892,000 22,932,110
11,374,795.7 9,623,346.6 8,141,579.2 9,939,318.9