MCO Manufacturing

Net Cash flow PV

Initial outlay
Cash Flows (net of taxes)
0 (4,500,000.00) (4,500,000.00)
1 1,500,000.00 1,363,636.36
2 2,000,000.00 1,652,892.56
3 2,500,000.00 1,878,287.00
4 2,500,000.00 1,707,533.64
5 2,500,000.00 1,552,303.31

COC 10%
Payback 2.40
NPV $3,654,652.87
IRR 35%
Pacific products

Initial outlay (18,600,000.00)

Equipment cost (10,000,000.00)
a.
Installation and testing (500,000.00)
Gain on sale of old equipment 500,000.00
b.
Tax shield 150,000.00
irrelevant (cash flow concern, not
c. initial outlay)
d. Inventory of spare parts (350,000.00)
Employee termination cost (12,000,000.00)
e
Tax shield 3,600,000.00

Annual Cash Flow 4,635,500.00

a&b. Tax savings from additional depreciation expense 285,000.00
lost revenue (500,000.00)
c.
Tax savings from lost revenue 150,000.00
d. Tax savings from additional maintenance expense 10,500.00
Payroll savings 6,000,000.00
e.
Additional tax due to savings (1,800,000.00)
Savings from reduced defects 1,500,000.00
f.
Additional tax due to for reduced defects (450,000.00)
Additional opex (800,000.00)
g.
Tax savings from lost revenue 240,000.00

Net present value

Year Cash flow

Year 0 (18,600,000.00)
Year 1 4,635,500.00
Year 2 4,635,500.00
Year 3 4,635,500.00
Year 4 4,635,500.00
Year 5 4,635,500.00
Year 6 4,635,500.00
Year 7 4,635,500.00
Year 8 4,635,500.00
Year 9 4,635,500.00
Year 10 4,635,500.00
NPV 4,664,501.97
 Yearly depreciation 1,050,000.00
a&b.
Yearly depreciation (old equipment) 100,000.00
Incremental depreciation 950,000.00
Tax shield 285,000.00
*this represents the additional tax savings you will incur for having bigger depreciation

Additional revenue (total) 350,000.00

d
Yearly additional inventory 35,000.00
Tax shield 10,500.00

*this represents the additional tax savings you will incur for carrying larger revenue
ving bigger depreciation

rying larger revenue

ASC Realty
Total Cash Flows Capex Working Capital
Year 0 (500,000,000.00) (500,000,000.00)
Year 1 (900,000,000.00) (800,000,000.00) (100,000,000.00)
Year 2 137,000,000.00
Year 3 172,000,000.00
Year 4 207,000,000.00
Year 5 242,000,000.00
Year 6 277,000,000.00
Year 7 277,000,000.00
Year 8 277,000,000.00
Year 9 277,000,000.00
Year 10 277,000,000.00
Year 11 277,000,000.00
Year 12 277,000,000.00
Year 13 277,000,000.00
Year 14 277,000,000.00
Year 15 277,000,000.00
Year 16 277,000,000.00
Year 17 277,000,000.00
Year 18 277,000,000.00
Year 19 277,000,000.00
Year 20 277,000,000.00
Year 21 847,000,000.00 470,000,000.00 100,000,000.00

Initial outlay (1,400,000,000.00)

NPV $23,035,010.31
EBIT Less: Depreciation EBITDA Less: Tax Net Income
- 0 - - -
- 0 - - -
170,000,000.00 (60,000,000.00) 110,000,000.00 (33,000,000.00) 77,000,000.00
220,000,000.00 (60,000,000.00) 160,000,000.00 (48,000,000.00) 112,000,000.00
270,000,000.00 (60,000,000.00) 210,000,000.00 (63,000,000.00) 147,000,000.00
320,000,000.00 (60,000,000.00) 260,000,000.00 (78,000,000.00) 182,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
370,000,000.00 (60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00
Net Income + Depreciation Capex Cost Disbursement date
- Land (100,000,000.00) Year 0
- Mall (400,000,000.00) Year 0
137,000,000.00 Mall (800,000,000.00) Year 1
172,000,000.00 Working Capital (100,000,000.00) Year 1
207,000,000.00 Depreciation (60,000,000.00)
242,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
277,000,000.00
ASC Realty
Total Cash Flows Capex Working Capital EBIT
Year 0 (500,000,000.00) (500,000,000.00) -
Year 1 (1,100,000,000.00) (1,000,000,000.00) (100,000,000.00) -
Year 2 140,000,000.00 170,000,000.00
Year 3 175,000,000.00 220,000,000.00
Year 4 210,000,000.00 270,000,000.00
Year 5 245,000,000.00 320,000,000.00
Year 6 280,000,000.00 370,000,000.00
Year 7 280,000,000.00 370,000,000.00
Year 8 280,000,000.00 370,000,000.00
Year 9 280,000,000.00 370,000,000.00
Year 10 280,000,000.00 370,000,000.00
Year 11 280,000,000.00 370,000,000.00
Year 12 280,000,000.00 370,000,000.00
Year 13 280,000,000.00 370,000,000.00
Year 14 280,000,000.00 370,000,000.00
Year 15 280,000,000.00 370,000,000.00
Year 16 280,000,000.00 370,000,000.00
Year 17 280,000,000.00 370,000,000.00
Year 18 280,000,000.00 370,000,000.00
Year 19 280,000,000.00 370,000,000.00
Year 20 280,000,000.00 370,000,000.00
Year 21 850,000,000.00 470,000,000.00 100,000,000.00 370,000,000.00

Initial outlay (1,600,000,000.00)

NPV ($134,549,342.37)
Less: Depreciation EBITDA Less: Tax Net Income Net Income + Depreciation
0 - - - -
0 - - - -
(70,000,000.00) 100,000,000.00 (30,000,000.00) 70,000,000.00 140,000,000.00
(70,000,000.00) 150,000,000.00 (45,000,000.00) 105,000,000.00 175,000,000.00
(70,000,000.00) 200,000,000.00 (60,000,000.00) 140,000,000.00 210,000,000.00
(70,000,000.00) 250,000,000.00 (75,000,000.00) 175,000,000.00 245,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
(70,000,000.00) 300,000,000.00 (90,000,000.00) 210,000,000.00 280,000,000.00
Capex Cost Disbursement date
Land (100,000,000.00) Year 0
Mall (400,000,000.00) Year 0
Mall (1,000,000,000.00) Year 1
Working Capital (100,000,000.00) Year 1
Depreciation (70,000,000.00)
ASC Realty
Total Cash Flows Capex Working Capital EBIT
Year 0 (500,000,000.00) (500,000,000.00) -
Year 1 (900,000,000.00) (800,000,000.00) (100,000,000.00) -
Year 2 137,000,000.00 170,000,000.00
Year 3 172,000,000.00 220,000,000.00
Year 4 207,000,000.00 270,000,000.00
Year 5 242,000,000.00 320,000,000.00
Year 6 277,000,000.00 370,000,000.00
Year 7 277,000,000.00 370,000,000.00
Year 8 277,000,000.00 370,000,000.00
Year 9 277,000,000.00 370,000,000.00
Year 10 277,000,000.00 370,000,000.00
Year 11 277,000,000.00 370,000,000.00
Year 12 277,000,000.00 370,000,000.00
Year 13 277,000,000.00 370,000,000.00
Year 14 277,000,000.00 370,000,000.00
Year 15 277,000,000.00 370,000,000.00
Year 16 277,000,000.00 370,000,000.00
Year 17 277,000,000.00 370,000,000.00
Year 18 277,000,000.00 370,000,000.00
Year 19 277,000,000.00 370,000,000.00
Year 20 277,000,000.00 370,000,000.00
Year 21 847,000,000.00 470,000,000.00 100,000,000.00 370,000,000.00

Initial outlay (1,400,000,000.00)

NPV ($61,482,195.04)
Less: Depreciation EBITDA Less: Tax Net Income Net Income + Depreciation
0 - - - -
0 - - - -
(60,000,000.00) 110,000,000.00 (33,000,000.00) 77,000,000.00 137,000,000.00
(60,000,000.00) 160,000,000.00 (48,000,000.00) 112,000,000.00 172,000,000.00
(60,000,000.00) 210,000,000.00 (63,000,000.00) 147,000,000.00 207,000,000.00
(60,000,000.00) 260,000,000.00 (78,000,000.00) 182,000,000.00 242,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
(60,000,000.00) 310,000,000.00 (93,000,000.00) 217,000,000.00 277,000,000.00
Capex Cost Disbursement date
Land (100,000,000.00) Year 0
Mall (400,000,000.00) Year 0
Mall (800,000,000.00) Year 1
Working Capital (100,000,000.00) Year 1
Depreciation (60,000,000.00)
Total Expansion cost 65,000,000.00
PPE 50,000,000.00
Working Capital 15,000,000.00
Depreciation (10,000,000.00)

Total Cash Flows Capex Working Capital Sales (units)

Year 0 (30,000,000.00) (30,000,000.00)
Year 1 (35,000,000.00) (20,000,000.00) (15,000,000.00)
Year 2 14,800,000.00 4,000,000.00
Year 3 14,800,000.00 4,000,000.00
Year 4 19,000,000.00 5,000,000.00
Year 5 19,000,000.00 5,000,000.00
Year 6 38,200,000.00 15,000,000.00 6,000,000.00

NPV 7,870,347.11
SP/ unit VC/ unit Contribution MargFixed cost EBIT Less: Depreciation
-
-
25.00 18.00 28,000,000.00 (10,000,000.00) 18,000,000.00 (10,000,000.00)
25.00 18.00 28,000,000.00 (10,000,000.00) 18,000,000.00 (10,000,000.00)
25.00 18.00 35,000,000.00 (10,000,000.00) 25,000,000.00 (10,000,000.00)
25.00 18.00 35,000,000.00 (10,000,000.00) 25,000,000.00 (10,000,000.00)
25.00 18.00 42,000,000.00 (10,000,000.00) 32,000,000.00 (10,000,000.00)
EBITDA Less: Tax Net Income Net Income + Depreciation
- - - -
- - - -
8,000,000.00 (3,200,000.00) 4,800,000.00 14,800,000.00
8,000,000.00 (3,200,000.00) 4,800,000.00 14,800,000.00
15,000,000.00 (6,000,000.00) 9,000,000.00 19,000,000.00
15,000,000.00 (6,000,000.00) 9,000,000.00 19,000,000.00
22,000,000.00 (8,800,000.00) 13,200,000.00 23,200,000.00
Total Expansion cost 65,000,000.00
PPE 50,000,000.00
Working Capital 15,000,000.00
Depreciation (10,000,000.00)

Total Cash Flows Capex Working Capital Sales (units)

Year 0 (30,000,000.00) (30,000,000.00)
Year 1 (35,000,000.00) (20,000,000.00) (15,000,000.00)
Year 2 10,600,000.00 3,000,000.00
Year 3 10,600,000.00 3,000,000.00
Year 4 14,800,000.00 4,000,000.00
Year 5 19,000,000.00 5,000,000.00
Year 6 34,000,000.00 15,000,000.00 5,000,000.00

NPV (3,995,696.45)
SP/ unit VC/ unit Contribution MargFixed cost EBIT Less: Depreciation
-
-
25.00 18.00 21,000,000.00 (10,000,000.00) 11,000,000.00 (10,000,000.00)
25.00 18.00 21,000,000.00 (10,000,000.00) 11,000,000.00 (10,000,000.00)
25.00 18.00 28,000,000.00 (10,000,000.00) 18,000,000.00 (10,000,000.00)
25.00 18.00 35,000,000.00 (10,000,000.00) 25,000,000.00 (10,000,000.00)
25.00 18.00 35,000,000.00 (10,000,000.00) 25,000,000.00 (10,000,000.00)
EBITDA Less: Tax Net Income Net Income + Depreciation
- - - -
- - - -
1,000,000.00 (400,000.00) 600,000.00 10,600,000.00
1,000,000.00 (400,000.00) 600,000.00 10,600,000.00
8,000,000.00 (3,200,000.00) 4,800,000.00 14,800,000.00
15,000,000.00 (6,000,000.00) 9,000,000.00 19,000,000.00
15,000,000.00 (6,000,000.00) 9,000,000.00 19,000,000.00
Total Expansion cost 65,000,000.00
PPE 50,000,000.00
Working Capital 15,000,000.00
Depreciation (10,000,000.00)

Total Cash Flows Capex Working Capital Sales (units)

Year 0 (30,000,000.00) (30,000,000.00)
Year 1 (35,000,000.00) (20,000,000.00) (15,000,000.00)
Year 2 10,000,000.00 4,000,000.00
Year 3 10,000,000.00 4,000,000.00
Year 4 13,000,000.00 5,000,000.00
Year 5 13,000,000.00 5,000,000.00
Year 6 31,000,000.00 15,000,000.00 6,000,000.00

NPV (11,590,727.05)
SP/ unit VC/ unit Contribution MargFixed cost EBIT Less: Depreciation
-
-
25.00 20.00 20,000,000.00 (10,000,000.00) 10,000,000.00 (10,000,000.00)
25.00 20.00 20,000,000.00 (10,000,000.00) 10,000,000.00 (10,000,000.00)
25.00 20.00 25,000,000.00 (10,000,000.00) 15,000,000.00 (10,000,000.00)
25.00 20.00 25,000,000.00 (10,000,000.00) 15,000,000.00 (10,000,000.00)
25.00 20.00 30,000,000.00 (10,000,000.00) 20,000,000.00 (10,000,000.00)
EBITDA Less: Tax Net Income Net Income + Depreciation
- - - -
- - - -
- - - 10,000,000.00
- - - 10,000,000.00
5,000,000.00 (2,000,000.00) 3,000,000.00 13,000,000.00
5,000,000.00 (2,000,000.00) 3,000,000.00 13,000,000.00
10,000,000.00 (4,000,000.00) 6,000,000.00 16,000,000.00
Idle Facilities (25,000,000.00)
Additional PPE (5,000,000.00)
Additional working capital (2,000,000.00)
Depreciation (500,000.00)

Total Cash Flows Capex Working Capital Gross Revenue

Year 0 (7,000,000.00) (5,000,000.00) (2,000,000.00)
Year 1 3,545,000.00 25,000,000.00
Year 2 4,245,000.00 30,000,000.00
Year 3 4,945,000.00 35,000,000.00
Year 4 5,645,000.00 40,000,000.00
Year 5 5,645,000.00 40,000,000.00
Year 6 5,645,000.00 40,000,000.00
Year 7 5,645,000.00 40,000,000.00
Year 8 5,645,000.00 40,000,000.00
Year 9 5,645,000.00 40,000,000.00
Year 10 7,645,000.00 2,000,000.00 40,000,000.00

NPV 13,862,201.27
 4850000

Contribution Margin Lease expense EBIT Less: Depreciation EBITDA

- -
5,000,000.00 (150,000.00) 4,850,000.00 (500,000.00) 4,350,000.00
6,000,000.00 (150,000.00) 5,850,000.00 (500,000.00) 5,350,000.00
7,000,000.00 (150,000.00) 6,850,000.00 (500,000.00) 6,350,000.00
8,000,000.00 (150,000.00) 7,850,000.00 (500,000.00) 7,350,000.00
8,000,000.00 (150,000.00) 7,850,000.00 (500,000.00) 7,350,000.00
8,000,000.00 (150,000.00) 7,850,000.00 (500,000.00) 7,350,000.00
8,000,000.00 (150,000.00) 7,850,000.00 (500,000.00) 7,350,000.00
8,000,000.00 (150,000.00) 7,850,000.00 (500,000.00) 7,350,000.00
8,000,000.00 (150,000.00) 7,850,000.00 (500,000.00) 7,350,000.00
8,000,000.00 (150,000.00) 7,850,000.00 (500,000.00) 7,350,000.00
Less: Tax Net Income Net Income + Depreciation
- - -
(1,305,000.00) 3,045,000.00 3,545,000.00
(1,605,000.00) 3,745,000.00 4,245,000.00
(1,905,000.00) 4,445,000.00 4,945,000.00
(2,205,000.00) 5,145,000.00 5,645,000.00
(2,205,000.00) 5,145,000.00 5,645,000.00
(2,205,000.00) 5,145,000.00 5,645,000.00
(2,205,000.00) 5,145,000.00 5,645,000.00
(2,205,000.00) 5,145,000.00 5,645,000.00
(2,205,000.00) 5,145,000.00 5,645,000.00
(2,205,000.00) 5,145,000.00 5,645,000.00
 Original Delayed Variance
Year 0 (30,000,000.00) Year 0 (30,000,000.00)
Year 1 15,000,000.00 Year 1 0
Year 2 20,000,000.00 Year 2 15,000,000.00
Year 3 25,000,000.00 Year 3 20,000,000.00
Year 4 25,000,000.00
NPV $7,600,000.00 NPV $80,000.00 ($7,520,000.00)
 Total Cash Flows Capex Working Capital Sales (units)
Year 0 (10,500,000.00) (10,000,000.00) (500,000.00)
Year 1 2,600,000.00 (100,000.00) 7,000,000.00
Year 2 2,825,000.00 (50,000.00) 7,500,000.00
Year 3 3,050,000.00 8,000,000.00
Year 4 3,050,000.00 8,000,000.00
Year 5 3,700,000.00 650,000.00 8,000,000.00

NPV 282,240.54
Payback 3.66
IRR 13%
Contribution Margin Fixed cost EBIT Less: Depreciation EBITDA
- -
3,500,000.00 (500,000.00) 3,000,000.00 (2,000,000.00) 1,000,000.00
3,750,000.00 (500,000.00) 3,250,000.00 (2,000,000.00) 1,250,000.00
4,000,000.00 (500,000.00) 3,500,000.00 (2,000,000.00) 1,500,000.00
4,000,000.00 (500,000.00) 3,500,000.00 (2,000,000.00) 1,500,000.00
4,000,000.00 (500,000.00) 3,500,000.00 (2,000,000.00) 1,500,000.00
Less: Tax Net Income Net Income + Depreciation
- - -
(300,000.00) 700,000.00 2,700,000.00
(375,000.00) 875,000.00 2,875,000.00
(450,000.00) 1,050,000.00 3,050,000.00
(450,000.00) 1,050,000.00 3,050,000.00
(450,000.00) 1,050,000.00 3,050,000.00
 Annual Cash Flow
2015 Year 0 (100,000,000.00)
2016 Year 1 15,000,000.00
2017 Year 2 15,000,000.00
2018 Year 3 15,000,000.00
2019 Year 4 15,000,000.00
2020 Year 5 15,000,000.00
2021 Year 6 15,000,000.00
2022 Year 7 15,000,000.00
2023 Year 8 15,000,000.00
2024 Year 9 15,000,000.00
2025 Year 10 15,000,000.00
2026 Year 11 15,000,000.00
2027 Year 12 15,000,000.00
2028 Year 13 15,000,000.00
2029 Year 14 15,000,000.00
2030 Year 15 15,000,000.00

A ROA 8.50%
B ROA 7.25%
PV discount rate A B
1.00 Year 0 -375 -400
0.91 Year 1 120 100
0.83 Year 2 200 200
0.75 Year 3 250 200
0.68 Year 4 150

COC: 10%
A B
Payback 3.22 3.5
NPV $87.21 $108.91
IRR 21.289% 21.264%
Annualized NPV 35.06797583 34.35897