Question: EBIT 0 1 2 3 4 5 6 7 8 9 10
EBIT 0 1 2 3 4 5 6 7 8 9 10 CAPEX 12.000.000 Operating costs Maintanance cost 10.000 10.250 10.506 10.769 11.038 11.314 11.597 11.887 12.184 12.489 Project benefits Electricity production 825.389 883.166 944.988 1.011.137 1.081.917 1.157.651 1.238.686 1.325.395 1.418.172 1.517.444 Accounting profit Revenue 825.389 883.166 944.988 1.011.137 1.081.917 1.157.651 1.238.686 1.325.395 1.418.172 1.517.444 Depreciation 1.200.000 1.200.000 1.200.000 1.200.000 1.200.000 1.200.000 1.200.000 1.200.000 1.200.000 1.200.000 Operating costs 10.000 10.250 10.506 10.769 11.038 11.314 11.597 11.887 12.184 12.489 A EBIT (384.611) (327.084) (265.518) (199.632) (129.121) (53.663) 27.090 113.508 205.988 304.956 B EBITDA 815.389 872.916 934.482 1.000.368 1.070.879 1.146.337 1.227.090 1.313.508 1.405.988 1.504.956 Tax depreciation 2.400.000 2.400.000 2.400.000 2.400.000 2.400.000 Taxable earnings (1.584.611) (1.527.084) (1.465.518) (1.399.632) (1.329.121) 1.146.337 1.227.090 1.313.508 1.405.988 1.504.956 Taxes (475.383) (458.125) (439.655) (419.890) (398.736) 343.901 368.127 394.052 421.796 451.487 C Cashflows (12.000.000) 1.290.772 1.331.041 1.374.137 1.420.258 1.469.615 802.436 858.963 919.455 984.192 1.053.469 PV (12.000.000) 1.195.160 1.141.153 1.090.834 1.043.932 1.000.195 505.671 501.196 496.753 492.341 487.960 D NPV (4.044.804) Scenario figures± Warehouse OUTSOURCED: Supply and installation Insourced: installation costs North € 5.000.000 € 225.000 South € 7.000.000 € 175.000 North & South € 12.000.000 € 400.000 Project Usage kWh Purchase cost Yearly cost North 12.000.000 € 0,17 2.040.000 South 10.000.000 € 0,16 1.600.000 Project Solar system size: Total capacity Sun exposure: Average Daily production kWh Yearly production kWh Savings Y1 North 6.000 1.020 8,9 9.078 3.313.470 563.290 South 4.000 680 6,6 4.488 1.638.120 262.099 Total 10.000 1.700 13.566 4.951.590 825.389 Solar-generated electricity kWh North South Example CO2 emissions factor 100.000 CO2 emissions (kg CO2) saved 0,87 1,17 0,87 CO2 emissions (tonnes CO2) saved 87.000 87 Outsourced numerical assumptions: Purchase price solar panel $ 750,00 per panel Only at INSOURCED Usefull life solar panel accounting 10 the Usefull life solar panel taks 5 the Use solar panels 365 days p/y Depreciation accounting $ 75,00 Depreciation taks $ 150,00 by hand Maintenance solar panel $ 1,00 Please note: maintenance costs must increase annually with inflation Annual inflation 2,5% p/y Electricity inflation 7% Let op: 7% including purchase cost credits Hurdle (discount) rate 8% Tax rate 30% Textual assumptions outsourced: CAPEX takes place in Y0, operation of solar panels and depreciation from Y1 After 10 years, the solar panels will be removed free of charge Cash Flow at the beginning of the year There is no deferred tax asset; taxable loss = positive tax effect on CF in the relevant year Own assumptions± Incremental increase in revenue WACC? -> can also be hurdle rate of 8%
2. For the outsourced alternative for Warehouse North, calculate: a. EBIT b. EBITDA c. Relevant cash flows for the discounted cash flow model d. NPV of the relevant cash flows
Give the answer including the calculation for question of this case? Is tried to answer this with the scenario figures and assumptions.
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