A 00 B C E F G 1 2 For a capital budgeting exercise, you need to determine the cash outflow at time, t=0 3 (That is, you need to determine initial cash outflow) 4 5 You have the following information: 6 7 Capital expenditure (e.g. machine) 5000 8 conduct a detailed feasibility study if project is accepted 2000 9 10 Initial net working capital 1000 11 Tax rate 12 Straight line depreciation over a period of (in years) 13 14 Cashflow for 'year O' (initial cash flow) will be 15 (Cash outflow is expressed as 'positive' number) 16 17 Correct formula to get initial cashflow in cell F14: 18 30% 10 =F7+F10 = (F7+F10+F7/F12)*(1-F11) =F7+F8+F10 =F7+F10+F7/F12 =(F7+F8+F10+F7/F12)*(1-F11)