In the previous example tutor provided the following formulas:

Discount factor at 10% 1 0.909091 0.826446 0.751315 0.683013

-1600 203.6364 264.4628 60.10518 10.92822

NPV -1060.87

IRR based after tax operating income 91.00%

MIRR 46%

Pay back No payback as 1600 is not attained in the case

How did you determine these calculations? This information would be helpful when developing the other two spreadsheets.

Thank you

\fCash flows are already given in the question, Equity return as per CAPM Model is as: Risk free rate+(market return-Risk free rate)*beta, which is 3%+(5%)*1.5=10.5% or market rate of return For discount rate, NPV, IRR, MIRR based on the schedule given. Sales revenue Cost at 300 Depriciation Total operating cost EBIT Taxes Depriciation After Tax Operating income New machine cost After tax salvage cost CAPEX Sales revenue Cost at 300 Depriciation Total operating cost EBIT Taxes Depriciation After Tax Operating income Incremental Cash flow and incremental CFs will be used for computation for NPV Discount factor at 10% For 700 similarly you can use this and for 400 same is given discount factor table is also given. 2500 2500 2500 2500 300 300 300 300 100 100 100 100 400 400 400 400 2100 840 2100 840 2100 840 2100 840 100 100 100 100 1360 1360 1360 1360 2500 2500 2500 2500 300 300 300 300 660 900 300 140 960 1200 600 440 1540 616 1300 520 1900 760 2060 824 -2000 400 -1600 660 900 300 140 -1600 1584 1680 1440 1376 -1600 224 320 80 16 1 0.90909 0.82645 0.75132 0.68301 -1600 203.636 264.463 60.1052 10.9282 NPV IRR based after tax operating income MIRR Pay back -1060.9 91.00% 46% No payback as 1600 is not attained in the case