A
After-tax
1 MARR =
2 Class Life =
State tax
3 rate =
Federal tax
4 rate =
5
effective tax
6 rate =
7 DB rate =
8
9
10
11
12
13
14
15
16
17
18
19
20
21
C
D
E
F
10%
5
Capital Investment =
Market Value =
$
$
6,000,000
200,000
7.6%
Annual Savings =
$
1,200,000
21%
Useful Life =
G
I
J
K
BTCF
0
1
2
3
4
5
6
7
8
9
10
10
$ (6,000,000)
$ 1,200,000
$ 1,242,000
$ 1,285,470
$ 1,330,461
$ 1,377,028
$ 1,425,224
$ 1,475,106
$ 1,526,735
$ 1,580,171
$ 1,635,477
$ 200,000
L
M
N
P
Q
R
S
T
Breakeven on investment
Cash Flow
for Income
Taxes
Depreciation
Taxable Income
Deduction
$
$
$
$
$
$
$
$
$
$
1,200,000
1,920,000
1,152,000
691,200
691,200
345,600
–
$
$
$
$
$
$
$
$
$
$
$
(678,000)
133,470
639,261
685,828
1,079,624
1,475,106
1,526,735
1,580,171
1,635,477
200,000
$
$
$
$
$
$
$
$
$
$
$
183,087
(36,042)
(172,626)
(185,201)
(291,542)
(398,338)
(412,280)
(426,709)
(441,644)
(54,008)
Adjusted
ATCF
ATCF
$ (6,000,000) $
$ 1,200,000 $
$ 1,425,087 $
$ 1,249,428 $
$ 1,157,835 $
$ 1,191,827 $
$ 1,133,682 $
$ 1,076,769 $
$ 1,114,456 $
$ 1,153,462 $
$ 1,193,833 $
$
145,992
(6,000,000)
1,200,000
1,425,087
1,249,428
1,157,835
1,191,827
1,133,682
1,076,769
1,114,456
1,153,462
1,339,825
PW =
AW =
IRR =
1,456,357
Adjusted
BTCF
$ (6,000,000)
$ 1,200,000
$ 1,242,000
$ 1,285,470
$ 1,330,461
$ 1,377,028
$ 1,425,224
$ 1,475,106
$ 1,526,735
$ 1,580,171
$ 1,835,477
Year
0 $ (6,000,000)
1 $1,090,909.09
2 $1,177,757.95
3
$938,713.57
4
$790,817.08
5
$740,030.62
6
$639,933.94
7
$552,552.58
8
$519,901.75
9
$489,180.28
10
$516,560.41
Cumulative
$
(6,000,000)
$
(4,909,090.91)
$
(3,731,332.96)
$
(2,792,619.39)
$
(2,001,802.31)
$
(1,261,771.69)
$
(621,837.74)
$
(69,285.16)
$
450,616.58
$
939,796.86
$
1,456,357.27
$2,000,000
$1,000,000
$$(1,000,000)
$(2,000,000)
$(3,000,000)
$(4,000,000)
$(5,000,000)
$(6,000,000)
$(7,000,000)
B6
B7
B9
F9
G9
I9
B10
C10
D10
E10
G19
I19
B20
G22
G23
G24
O
8
27%
200%
EOY
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
B
= ROUND( (B3 + B4 * ( 1 – B3) ), 2)
= IF(B2>15, 1.5, 2)
= – E1
= B9 + E9
= F9
= B9
= $E$3
= IF(A10=$B$2+1, 0.5*C9, VDB($E$1, 0, $B$2, MAX(0, A10-1.5), A10-0.5, $B$7, FALSE) )
= B10 – C10
= – $B$6 * D10
= F19 + F20
= B19 + B20
= E2
= NPV($B$1, G10:G19) + G9
= PMT($B$1, $E$4, – G22)
= IRR(G9:G19, $B$1)
$
$
$ 2,498,397
272,985 $
15.5%
468,310
18.4%
$
1,456,357
1
2
3
4
5
6
7
8
9
10
11
Series1
After-tax
MARR =
Class Life
=
State tax
rate =
7.6%
Capital
Investment =
Market Value
=
Annual
Savings =
Federal
tax rate =
21%
Useful Life =
8
effective
tax rate =
DB rate =
27%
200%
Taxable
Income
Cash Flow
for Income
Taxes
EOY
0
1
2
3
4
5
6
7
8
9
10
10
10%
7
BTCF
Depreciati
on
Deduction
$ (3,381,782)
$
700,000 $
$
724,500 $
$
749,858 $
$
776,103 $
$
803,266 $
$
831,380 $
$
860,479 $
$
890,595 $
$
921,766 $
$
954,028 $
$
200,000
483,112
828,192
591,565
422,547
301,819
301,819
301,819
152,180
–
$
$
$
$
$
$
$
$
$
$
$
216,888
(103,692)
158,292
353,556
501,447
529,561
558,660
738,415
921,766
954,028
200,000
$ 3,381,782
$
200,000
$
700,000
$
$
$
$
$
$
$
$
$
$
$
(58,569)
28,001
(42,745)
(95,474)
(135,411)
(143,003)
(150,860)
(199,402)
(248,914)
(257,626)
(54,008)
ATCF
Adjusted
ATCF
$ (3,381,782) $ (3,381,782)
$
641,431 $
641,431
$
752,501 $
752,501
$
707,112 $
707,112
$
680,628 $
680,628
$
667,855 $
667,855
$
688,378 $
688,378
$
709,618 $
709,618
$
691,194 $
691,194
$
672,853 $
672,853
$
696,402 $
842,394
$
145,992
PW = $
AW = $
IRR =
919,366
172,330
15.9%
Breakeven on investment
Adjusted
BTCF
$ (3,381,782)
$
700,000
$
724,500
$
749,858
$
776,103
$
803,266
$
831,380
$
860,479
$
890,595
$
921,766
$ 1,154,028
Year
0
1
2
3
4
5
6
7
8
9
10
Cumulative
$ (3,381,782) $
(3,381,782)
$583,119.54 $
(2,798,662.64)
$621,901.54 $
(2,176,761.09)
$531,263.94 $
(1,645,497.16)
$464,878.29 $
(1,180,618.87)
$414,685.63 $
(765,933.24)
$388,571.25 $
(377,361.99)
$364,146.38 $
(13,215.61)
$322,447.02 $
309,231.40
$285,355.16 $
594,586.57
$324,779.50 $
919,366.07
$2,000,000
$1,000,000
$-
$(1,000,000)
$(2,000,000)
$(3,000,000)
$(4,000,000)
$(5,000,000)
$(6,000,000)
$(7,000,000)
$
1,607,745
$
301,362
19.4%
$
919,366
1
2
3
4
5
6
6
7
8
9
10
11
Series1
After-tax
MARR =
Class Life
=
State tax
rate =
7.6%
Capital
Investment
=
Market
Value =
Annual
Savings =
Federal
tax rate =
21%
Useful Life
=
effective
tax rate =
DB rate =
27%
200%
10%
7
EOY
0
1
2
3
4
5
6
7
8
9
10
10
BTCF
$
$
$
$
$
$
$
$
$
$
$
$
(990,000)
150,000
155,250
160,684
166,308
172,128
178,153
184,388
190,842
197,521
204,435
200,000
Depreci
ation
Taxable
Deducti Income
on
$ 408,429
$ 509,449
$ 308,178
$ 123,698
$ 88,356
$ (88,110)
$ (88,110)
$ 44,550
$
$
–
$ (258,429)
$ (354,199)
$ (147,494)
$ 42,609
$ 83,772
$ 266,263
$ 272,498
$ 146,292
$ 197,521
$ 204,435
$ 200,000
$
990,000
$
200,000
$
150,000
8
Cash
Flow for
Income
Taxes
$
$
$
$
$
$
$
$
$
$
$
69,786
95,648
39,829
(11,506)
(22,622)
(71,902)
(73,585)
(39,505)
(53,339)
(55,206)
(54,008)
Adjusted
ATCF
Adjusted
BTCF
$
$
$
$
$
$
$
$
$
$
$
(990,000)
219,786
250,898
200,513
154,801
149,507
106,251
110,803
151,337
144,183
295,221
$
$
$
$
$
$
$
$
$
$
$
(990,000)
150,000
155,250
160,684
166,308
172,128
178,153
184,388
190,842
197,521
404,435
PW = $
AW = $
IRR =
128,774
$
139,770
24,138
$
26,199
ATCF
$
$
$
$
$
$
$
$
$
$
$
$
(990,000)
219,786
250,898
200,513
154,801
149,507
106,251
110,803
151,337
144,183
149,229
145,992
13.2%
*The last 3 years of depreciation of the old machienes are tacked on to the first 3 years
12.8%
Breakeven on investment
Year
0
1
2
3
4
5
6
7
8
9
10
Cumulative
$ (990,000) $
$199,805.50 $
$207,353.63 $
$150,648.43 $
$105,731.50 $
$92,831.80 $
$59,976.09 $
$56,859.39 $
$70,599.93 $
$61,147.53 $
$113,820.51 $
(990,000)
(790,194.50)
(582,840.87)
(432,192.44)
(326,460.94)
(233,629.14)
(173,653.05)
(116,793.66)
(46,193.73)
14,953.80
128,774.31
$2,000,000
$1,000,000
$$(1,000,000)
$(2,000,000)
$(3,000,000)
$(4,000,000)
$(5,000,000)
$(6,000,000)
$(7,000,000)
$
128,774
1
2
3
4
5
6
7
8
8
9
10
11
Series1
After-tax
MARR =
Class Life
=
State tax
rate =
7.6%
Capital
Investment = $ 9,500,000
Market Value
=
$ 900,000
Annual
Savings =
$ 1,300,000
Federal
tax rate =
21%
Useful Life =
effective
tax rate =
DB rate =
27%
200%
10%
7
EOY
BTCF
0
1
2
3
4
5
6
7
8
9
10
10
$ (9,500,000)
$ 1,300,000
$ 1,345,500
$ 1,392,593
$ 1,441,333
$ 1,491,780
$ 1,543,992
$ 1,598,032
$ 1,653,963
$ 1,711,852
$ 1,771,767
$
900,000
Depreciati
Taxable
on
Income
Deduction
$ 1,357,143
$ 2,326,531
$ 1,661,808
$ 1,187,005
$ 847,861
$ 847,861
$ 847,861
$ 427,500
$
$
–
$ (57,143)
$ (981,031)
$ (269,215)
$ 254,328
$ 643,919
$ 696,131
$ 750,171
$ 1,226,463
$ 1,711,852
$ 1,771,767
$ 900,000
8
Cash
Flow for
Income
Taxes
$
$
$
$
$
$
$
$
$
$
$
15,431
264,918
72,699
(68,679)
(173,884)
(187,983)
(202,576)
(331,194)
(462,268)
(478,448)
(243,036)
ATCF
$ (9,500,000)
$ 1,315,431
$ 1,610,418
$ 1,465,291
$ 1,372,655
$ 1,317,896
$ 1,356,009
$ 1,395,456
$ 1,322,769
$ 1,249,583
$ 1,293,319
$
656,964
Adjusted
ATCF
Adjusted
BTCF
$ (9,500,000)
$ 1,315,431
$ 1,610,418
$ 1,465,291
$ 1,372,655
$ 1,317,896
$ 1,356,009
$ 1,395,456
$ 1,322,769
$ 1,249,583
$ 1,950,283
$ (9,500,000)
$ 1,300,000
$ 1,345,500
$ 1,392,593
$ 1,441,333
$ 1,491,780
$ 1,543,992
$ 1,598,032
$ 1,653,963
$ 1,711,852
$ 2,671,767
PW = $ (736,018) $
AW = $ (137,962) $
IRR =
8.2%
(29,949)
(5,614)
9.9%
Breakeven on investment
Year
0
1
2
3
4
5
6
7
8
9
10
Cumulative
$ (9,500,000) $
(9,500,000)
$1,195,846.23 $
(8,304,153.77)
$1,330,923.56 $
(6,973,230.21)
$1,100,895.07 $
(5,872,335.14)
$937,541.53 $
(4,934,793.61)
$818,309.76 $
(4,116,483.85)
$765,431.69 $
(3,351,052.16)
$716,089.46 $
(2,634,962.70)
$617,081.48 $
(2,017,881.22)
$529,945.30 $
(1,487,935.92)
$751,918.41 $
(736,017.50)
$2,000,000
$1,000,000
$$(1,000,000)
$(2,000,000)
$(3,000,000)
$(4,000,000)
$(5,000,000)
$(6,000,000)
$(7,000,000)
$
(736,018)
1
2
3
4
5
6
7
8
8
9
10
11
Series1
PLEASE USE THIS
TEMPLATE TO CREATE
PRESENTATIONS USING
THE WVU BRAND.

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