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Financial Exercises 4: Cash flows: Unterschied zwischen den Versionen
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Financial Exercises 4: Cash flows (Quelltext anzeigen)
Version vom 12. Januar 2012, 17:26 Uhr
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Construction Partners Inc. considers submitting a proposal for a large construction project. Your task is to assess the effects on working capital and cash flows. You already prepared the expected development of the four most important positions of (net) working capital:<br> | Construction Partners Inc. considers submitting a proposal for a large construction project. Your task is to assess the effects on working capital and cash flows. You already prepared the expected development of the four most important positions of (net) working capital:<br> | ||
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|- align="center" | |- align="center" | ||
|Year|| 0|| 1|| 2|| 3|| 4 | |Year|| 0|| 1|| 2|| 3|| 4 | ||
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|align="left"| Change in working capital || || || || || | |align="left"| Change in working capital || || || || || | ||
|} | |} | ||
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a. Calculate the net working capital for years 0 to 4.<br> | a. Calculate the net working capital for years 0 to 4.<br> | ||
b. What effects on the cash flow of years 0 to 4 do you expect? <br> | b. What effects on the cash flow of years 0 to 4 do you expect? <br> | ||
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United Eye-T presents the following income statement of a business unit: | United Eye-T presents the following income statement of a business unit: | ||
{|align=" | {|align="left" border="1" cellpadding="3" cellspacing="0" | ||
|- align="left" | |- align="left" | ||
|Revenues|| align="right" |500.000 | |Revenues|| align="right" |500.000 | ||
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| Profit|| align="right" | 50.000 | | Profit|| align="right" | 50.000 | ||
|} | |} | ||
<br> | <br style="clear:left;"/> | ||
a. Determine the cash flow for a discounted cash-flow (DCF)-analysis.<br> | a. Determine the cash flow for a discounted cash-flow (DCF)-analysis.<br> | ||
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=== | === 4. Cash flows based on accounting and tax depreciation === | ||
Solar Innos is considering a proposal to manufacture a new line of solar panels. Given its innovative design, Solar Innos expects strong sales in the next three years. After year 3, the equipment and technology will be sold to prevent losses from the expected strong international competition. <br> | Solar Innos is considering a proposal to manufacture a new line of solar panels. Given its innovative design, Solar Innos expects strong sales in the next three years. After year 3, the equipment and technology will be sold to prevent losses from the expected strong international competition. <br> | ||
Solar Innos forecasts necessary capital investments of 10 mio € (in year 0), a resale value of equipment and technology of 1 mio € (in year 3), a tax rate of 35 % and a cost of capital of 10 %. Working capital is assumed to be 20 % of the sales. The following table resumes the sales and cost forecasts for years 0 to 4.<br> | Solar Innos forecasts necessary capital investments of 10 mio € (in year 0), a resale value of equipment and technology of 1 mio € (in year 3), a tax rate of 35 % and a cost of capital of 10 %. Working capital is assumed to be 20 % of the sales. The following table resumes the sales and cost forecasts for years 0 to 4.<br> | ||
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|- align="center" | |- align="center" | ||
|Year|| 0|| 1|| 2|| 3|| 4 | |Year|| 0|| 1|| 2|| 3|| 4 | ||
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|align="left" |Other costs|| 3.000|| 1.000|| 1.000|| 1.000|| 0 | |align="left" |Other costs|| 3.000|| 1.000|| 1.000|| 1.000|| 0 | ||
|} | |} | ||
<br> | <br style="clear:left;"/> | ||
a. Prepare the asset statements and the income statements for years 0 to 4, based on these informations. Assume straight line depreciation over the 3-years depreciable life of the capital investment. <br> | a. Prepare the asset statements and the income statements for years 0 to 4, based on these informations. Assume straight line depreciation over the 3-years depreciable life of the capital investment. <br> | ||
b. Prepare the corresponding cash flow analysis and calculate the NPV of the solar panel project.<br> | b. Prepare the corresponding cash flow analysis and calculate the NPV of the solar panel project.<br> | ||