Capital Budgeting Analysis

RUNNING HEAD: Capital Budgeting Analysis

Capital Budgeting Analysis

Claudio Cordon

Strayer University

February 26th, 2012

1. perform the base case Depreciation and After-Tax Cash Flow tables. regard the NPV, IRR, and MIRR. Does this investment make economic sense? Support your break up with appropriate statistics.
Satcom Division Capital Budgeting Analysis| | |
Install apostrophize| $750 | Work. Cap.| $75 | Initial Outlay| $825 | |
WACC =| 14%| Tax direct =| 35%| Sensitivity| 0.00%| |
| | | | | | | |
| Table 1| | | | |
DEPRECIATION catalogue FOR NEW MACHINE| | |
YEAR| MACRS| COST| ADC| ACDEP| BV| | |
1| 0.2000| 750 | 150.00 | 150.00 | 600.00 | | |
2| 0.3200| 750 | 240.00 | 390.00 | 360.00 | | |
3| 0.1920| 750 | 144.00 | 534.00 | 216.00 | | |
4| 0.1152| 750 | 86.40 | 620.40 | 129.60 | | |
5| 0.1152| 750 | 86.40 | 706.81 | 43.19 | | |
6| 0.0576| 750 | 43.20 | 750.00 | - | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Table2|
AFTER-TAX CASH break away TABLE|
YEAR| 1| 2| 3| 4| 5| 6| 7|
EBDT| 121.00| 132.00| 192.50| 275.00| 412.50| 495.00| 605.00|
DEPR| 150.



00 | 240.00 | 144.00 | 86.40 | 86.40 | 43.20| 0.00|
EBT| -29.00| -108.00| 48.50| 188.60| 326.10| 451.80| 605.00|
TAX| -10.15| -37.80| 16.98| 66.01| 114.14| 158.13| 211.75|
EAT| -18.85| -70.20| 31.53| 122.59| 211.97| 293.67| 393.25|
DEPR| 150.00 | 240.00 | 144.00 | 86.40 | 86.40 | 43.20 | - |
ATCF| 131.15| 169.80| 175.53| 208.99| 298.37| 336.87| 393.25|
WC deduct|  |  |  |  |  |  | 25.0 |
Sale|  |  |  |  |  |  | - |
Taxes|  |  |  |  |  |  | - |
Net ATCF| 131.2 |...If you want to get a in force(p) essay, order it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .