标题: Annual Net Cash Flow [打印本页] 作者: scr879 时间: 2013-8-16 13:50 标题: Annual Net Cash Flow
What will be the net cash flow in below example - (My Calculation -
-760
330
370
540
260
290 )
Prospect Limited is considering investing in some new plant. The plant would cost ￡1,000,000 to implement, it would last 5 years, and it would then be sold for ￡50,000. The relevant profit and loss accounts for each year during the life of the project are as follows:
Year to 31 March
20X1
20X2
20X3
20X4
20X5
400
410
430
440
490
Net profit
200
300
400
400
100
Taxation
40
70
100
100
10
Retained profits
160
230
300
300
90
Additional information:
1. All sales are made and all purchases are obtained on credit terms.
2. Outstanding trade debtors and trade creditors at the end of each year are expected to be as follows:
Year
Trade debtors
Trade creditors
￡000
￡000
20X1
200
250
20X2
240
270
20X3
300
330
20X4
320
300
20X5
400
150
3. Expenses would all be paid in cash during each year in question.
4. Taxation would be paid on 1 January following each year end.
5. Half the plant would be paid for in cash on 1 April 20X0, and the remaining half (also in cash) on January 20X1. The resale value of ￡50,000 will be received in cash on 31 March 20X6.作者: Rasec 时间: 2013-8-16 13:51
Too difficult to decipher.作者: dirk01 时间: 2013-8-16 13:52
Please post again line by line.
In any case, use FCFF for net cash flow, IIRC it is
NetIncome + NonCashCharges + (1-TaxRate) * Interest - CapEx - OpEx
In your example, for each year
NetIncome = net profit
NonCashCharges = depreciation
TaxRate = taxation / gross profit
Interest - may be 0, may be hiding in the Expenses
CapEx - may be 0, may be hiding in the balance sheet (end net PPE - beginning net PPE)
OpEx = closing stock + purchases - opening stock
