Hola Cola 111

CASH FLOW ESTIMATION Year sales unit selling price per unit sales revenue variable cost fixed cost Depreciation EBIT Tax Net Income

2012 7200000 5 36000000 13320000 3060000 10000000 9620000 2886000 6734000

2013 7200000 5 36000000 13320000 3060000 10000000 9620000 2886000 6734000

2014 7200000 5 36000000 13320000 3060000 10000000 9620000 2886000 6734000

9620000 10000000 2886000 42000 800000 0 15892000

9620000 10000000 2886000 42000 800000 0 15892000

9620000 10000000 2886000 42000 800000 0 15892000

Interim Incremental Cashflow EBIT add: Depreciation less: tax less:opportunity cost less: Erosion cost Changes in Working capital Operating Cash Flow

Net Initial Cash Outlay cost of machine Intial working capital required Initial capital Outlay

50000000 1080000 51080000

Terminal year Cash flow (2016) Final year CF add: Gain on sale of assest add: Working capital release Terminal CF

15892000 2800000 1500000 20192000

Net Present Value

256420.43868

IRR PI MIRR Payback period

18.42% 1.0050199773 18.32% 3.21

years

2015 7200000 5 36000000 13320000 3060000 10000000 9620000 2886000 6734000

2016 7200000 5 36000000 13320000 3060000 10000000 9620000 2886000 6734000

9620000 10000000 2886000 42000 800000 0 15892000

9620000 10000000 2886000 42000 800000 15892000

Working Note: raw material =1.8/liter overhead cost= 1% of sales For fixed cost labor cost+energy+adminstrative and selling expense

3060000

For depreciation Machine life resale value of machine equipment cost

5 4000000 50000000

tax

30%

opportunity cost before tax erosion cost after tax

60000 800000

Working capital needed every year change in WC

1500000 0

For IRR -51080000 15892000 15892000 15892000 15892000 20192000 18.42% 18.32%

cost of machine

wacc 0.182

IRR MIRR

For Payback period year 0 1 2 3 4 5

CF -51080000 15892000 15892000 15892000 15892000 20192000 Payback period

Cumulative Cf -51080000 -35188000 -19296000 -3404000 12488000 32680000 3.21

years