Equity Inflows
Out Flows
-79035 -1986 -550148 -
NPV IRR
N ET 1,576 185,045 225,457 233,074 200,600 218,903 203,857 232,620 229,393 238,588 226,629 216,878 216,655 262,881 242,378 251,988 260,474 250,893 376,215 320,878 301,370 276,398 292,810 217,227 294,578 289,656 289,705 278,074 276,806 274,449 263,604 247,540 250,329 242,937 240,644 226,196
Out Flows -79035 -1986 - 550148 -5 1 576 15 185045 18 225457 22 233074 23 200600 20 218903 21 203857 20 232620 23 229393 22 238588 23 226629 22 216878 21 216655 21 262881 26 242378 24 251988 25 260474 26 250893 25 376215 37 320878 32 301370 30 276398 27 292810 29 217227 21 294578 29 289656 28 289705 28 278074 27 276806 27 274449 27 263604 26 247540 24 250329 25 242937 24 240644 24 226196 22 $136,992.12 26%
(79,035) (1,001,986) (574,447) (241,405) -
Leverage
Beta Levered
40 45 50 55 60 65 70 75 80
Ke
0.63 0.69 0.76 0.84 0.95 1.09 1.27 1.52 1.90
WACC
18.80 19.21 19.69 20.28 21.02 21.97 23.24 25.01 27.67
13.882 13.4885 13.095 12.7015 12.308 11.9145 11.521 11.1275 10.734
By raising debt & increasing leverage, the equity NPV is reducing and Project NPV is going up and sh
Project Inflows
NET 317,481 384,765 389,154 366,575 401,552 398,211 433,477 435,267 438,118 373,182 371,469 378,471 387,428 328,978 358,441 391,545 383,528 382,868 327,531 308,024 283,051 299,464 295,554 294,578 289,656 289,705 278,074 278,806 274,449 263,604 247,540 250,329 242,937 240,644 226,196
(79,035) (1,001,986) (574,447) (241,405) 317,481 384,765 389,154 366,575 401,552 398,211 433,477 435,267 438,118 373,182 371,469 378,471 387,428 328,978 358,441 391,545 383,528 382,868 327,531 308,024 283,051 299,464 295,554 294,578 289,656 289,705 278,074 278,806 274,449 263,604 247,540 250,329 242,937 240,644 226,196 $506,066.85 16%
IRR NPV
IRR
Equity
Project
$233,313.56 213,300.66 190,635.02 164,781.42 135,066.70 100,645.92 60,476.24 13,340.34 (41,931.23)
Equity
240,256.51 300,112.20 363,615.81 431,040.30 502,683.56 578,870.99 659,958.52 746,335.90 838,430.41
ws that raising debt is good for Petrozuela
26% 26% 26% 26% 26% 26% 26% 26% 26%
Project
16% 16% 16% 16% 16% 16% 16% 16% 16%
