cash flow - the total amount of money being transferred into and out of a business, especially as affecting liquidity.
Finance1. Spend 8000 on a new machine. You think it will provide after tax cash inflows of 3500 per year for the next three years. The cost of funds is 8%. Find the NPV, IRR, and MIRR. Should you buy it?
2. Let the machine in number one be Machine A. An alternative is Machine B. It costs 8000 and will provide after tax cash inflows of 5000 per year for 2 years. It has the same risk as A. Should you buy A or B?
3. Spend 100000 on Machine C. You will need 5000 more in net working capital. C is three year MACRS. The cost of funds is 8% and the tax rate is 40%. C is expected to increase revenues by 45000 and costs by 7000 for each of the next three years. You think you can sell C for 10000 at the end of the three year period.
a. Find the year zero cash flow.
b. Find the depreciation for each year on the machine.
c. Find the depreciation tax shield for the three operating years.
d. What is the projects contribution to operations each year, ignoring depreciation effects?
e. What is the cash flow effect of selling the machine?
f. Find the total CF for each year.
g. Should you buy it?
Incremental Cash FlowFree Incremental Cash Flow Calculator - Given cash inflows, outflows, depreciable amounts, and tax rates, this determines the incremental cash flows.
Method of Equated Time-Exact Method-Macaulay Duration-VolatilityFree Method of Equated Time-Exact Method-Macaulay Duration-Volatility Calculator - Given a set of cash flows at certain times, and a discount rate, this will calculate t using the equated time method and the exact method, as well as the macaulay duration and volatility
Modified Internal Rate of Return (MIRR)Free Modified Internal Rate of Return (MIRR) Calculator - Given a set of positive/negative cash flows, a finance rate, and a reinvestment rate, this calculates the modified internal rate of return
Modified Payback PeriodFree Modified Payback Period Calculator - Given a set of cash inflows, outflows, and a discount rate, this calculates the modified payback period.
Net Present Value (NPV) - Internal Rate of Return (IRR) - Profitability IndexFree Net Present Value (NPV) - Internal Rate of Return (IRR) - Profitability Index Calculator - Given a series of cash flows Ct at times t and a discount rate of (i), the calculator will determine the Net Present Value (NPV) at time 0, also known as the discounted cash flow model.
Profitability Index
Also determines an Internal Rate of Return (IRR) based on a series of cash flows. NPV Calculator
Payback PeriodFree Payback Period Calculator - Given a set of cash inflows and cash outflows at certain times, this determines the net cash flow, cumulative cash flow, and payback period
