Year of Cash Flow

Project Type of Cash Flow 0 1 2

Investment $ (10,000.00)
Revenue $ 21,000.00
Operating Expense $ (11,000.00)
A Depreciation $ (10,000.00)
Pre-tax Income $ (10,000.00) $ - $ -
Net Income $ (6,000.00) $ - $ -
Cash Flow $ (10,000.00) $ 10,000.00 $ -

Investment $ (10,000.00)
Revenue $ 15,000.00 $ 17,000.00
Operating Expense $ (5,833.00) $ (7,833.00)
B Depreciation $ (5,000.00) $ (5,000.00)
Pre-Tax Income $ (10,000.00) $ 4,167.00 $ 4,167.00
Net Income $ (6,000.00) $ 2,500.20 $ 2,500.20
Cash Flow $ (10,000.00) $ 7,500.20 $ 7,500.20

Investment $ (10,000.00)
Revenue $ 10,000.00 $ 11,000.00
Operating Expense $ (5,555.00) $ (4,889.00)
C Depreciation $ (3,333.33) $ (3,333.33)
Pre-Tax Income $ (10,000.00) $ 1,111.67 $ 2,777.67
Net Income $ (6,000.00) $ 667.00 $ 1,666.60
Cash Flow $ (10,000.00) $ 4,000.33 $ 4,999.93

Investment $ (10,000.00)
Revenue $ 30,000.00 $ 10,000.00
Operating Expense $ (15,555.00) $ (5,555.00)
D Depreciation $ (3,333.33) $ (3,333.33)
Pre-Tax Income $ (10,000.00) $ 11,111.67 $ 1,111.67
Net Income $ (6,000.00) $ 6,667.00 $ 667.00
Cash Flow $ (10,000.00) $ 10,000.33 $ 4,000.33
low A
3 1 Payback period A=1 year
Rank High to Low: A or D, B, C B= 2 years
C= 3 years
D= 1 year

$ - 2 Accounting return on investment

$ - A= $ -
$ - B= $ 0.50
C= $ 0.60
D= $ 0.47
Rank High to Low: C,B,D,A

3 A IRR = 0%
$ - B IRR = 32%
$ - C IRR = 34%
$ - D IRR = 43%
Rank High to Low: D,C,B,A

$ 30,000.00 4 NPV (10%)

$ (15,555.00) A $ (909.09)
$ (3,333.33) B $ 3,016.88
$ 11,111.67 C $ 5,282.24
$ 6,667.00 D $ 4,651.32
$ 10,000.33
Rank High to Low (10%): C,D,B,A
Rank High to Low (35%): D,C,B,A
$ 5,000.00
$ (2,222.00)
$ (3,333.33)
$ (555.33)
$ (333.20)
$ 3,000.13

B
The rankings differ because the
methods of measuring focus on
different aspects of the project and
also make different assumptions for
measuring the value of investments.

Payback period measures how quickly the cash flows c

The Accounting Return on Investments measures the
The Internal Rate of Return measures the effective ret
The NPV measures the present value of benefits minus p
C If independent, choose B, C, and D because they all hav
If mutually exclusive, choose D because it has the high
 NPV (35%)
$ (2,592.59)
$ (328.96)
$ (228.79)
$ 822.01

kly the cash flows can a project can recoup the orginal investments into a project. Assumes that return
ments measures the average profit that can be expected from investments. It assumes that money is w
res the effective return rate such that NPV is zero. Assumes that money is reinvested
of benefits minus present value of costs. Assumes that money is reinvested.
because they all have positive NPV and their IRR are greater than the cost of capital
ause it has the highest IRR and NPV if discount is 35%. It also has second highest for other metrics.
. Assumes that returns from investment continues after payback period.
umes that money is worth the same at any time - thereby ignoring the time value of money
for other metrics.
ue of money
Timeline
Tax Rate 40%
Net Working Capital: 27%

A Sales
Cost of Sales
SGA Expenses
Introductory Expense
Depreciation
Income before tax
After Tax Income
Operating Cash Flow

Capital Expenditures (Equipment)

Working Capital
Net Change in Working Capital

Free Cash Flow

B NPV
IRR

C Yes because the NPV is positive and the IRR is greater than the disco
 Year 0 Year 1 Year 2 Year 3 Year 4
0.0000 10.0000 13.0000 13.0000 8.6667
6.0000 7.8000 7.8000 5.2000
2.3500 3.0550 3.0550 2.0367
0.2000 0.0000 0.0000 0.0000
0.1000 0.1000 0.1000 0.1000
1.3500 2.0450 2.0450 1.3300
0.8100 1.2270 1.2270 0.7980
0.0000 0.9100 1.3270 1.3270 0.8980

-0.5000 0.0000 0.0000 0.0000 0.0000

2.7000 3.5100 3.5100 2.3400 1.1700
2.7000 0.8100 0.0000 -1.1700 -1.1700

-3.2000 0.1000 1.3270 2.4970 2.0680

0.90586
29.5453%

e and the IRR is greater than the discount rate (20%)

Year 5
4.3333 (In Millions)
2.6000
1.0183
0.0000
0.1000
0.6150
0.3690
0.4690

0.0000
0.0000
-1.1700

1.6390
3
A INGRESOS COSTOS
210000 110000

B EQUIDAD VIEJA UTILIDAD DEL

1000000 100000

Total Equity Old Shares

1100000 10000

Project Cost New Price

110000 110

C Old Shares New Shares

10000 1000

Old Shares Total Shares

10000 11000

New Shares Total Shares

1000 11000

El patrimonio total (o valor) de la

empresa aumenta por el valor del
VAN (10000). Por lo tanto, el
precio de la accin sube 10 a 110.
Por lo tanto, la gente compr
anteriormente la accin a 100
pero ahora la accin vale 110, por
lo que tienen una ganancia no
realizada de 10 dlares en cada
accin
NPV
100000

Total Equity
1100000

New Price
110

New Shares
1000

Total Shares
11000

Total Inflow Equity Old Equity

1210000 1100000

Total Inflow Equity New Equity

1210000 110000
A

C
D
 Modelo de flujo de efectivo de 210 avio
AO
t=
Flujo de efectivo en la entrega
Deposits
Total de ingresos

Costo de desarrollo inicial

Costo de produccin anual
Costos totales

Flujos de caja libre

NPV =

Modelo de flujo de caja con 300 aviones a

AO
t=
Flujo de efectivo en la entrega
Depsitos
Total de ingresos

Costo de desarrollo inicial

Costo de produccin anual
Total Costs

Flujos de caja libre

NPV =
No, el VPN sigue siendo negativa.

Modelo de flujo de efectivo pa

Year
t=
Flujo de efectivo en la entrega
Depsitos
Total de ingresos

Costo de desarrollo inicial

Costo de produccin anual
Costos totales
Flujos de caja libre
NPV =
En 479 planos, contamos con un NPV negativo. El VPN es positivo en 480 aviones.

No, no era razonable porque el valor actual neto del programa Tri Star era
negativo. Tendran que vender 480 aviones apenas para romperse incluso.
Suponiendo que un optimista 10% crecimiento anual en viajes en avin,
Lockheed tendra que capturar el 62% del total del mercado mundial libre de
cuerpo ancho en la prxima dcada para romper incluso. Si tuviramos que
asumir una tasa de crecimiento ms razonable de 5%, el mercado mundial
total slo sera 323 aviones y Lockheed no poda vender 480 avin en un
mercado que se proyecta para tener slo 323 aviones. Yo predecira que la
adopcin del programa Tri Star tendra un impacto negativo en el valor de los
accionistas. Reducira el valor para el accionista porque este programa no
generara un ingreso neto positivo para los accionistas de la empresa.
de efectivo de 210 aviones a 14 millones costo por plano. Millones de dlares.
1967 1968 1969 1970 1971 1972 1973
0 1 2 3 4 5 6
420.00 420.00
140.00 140.00 140.00 140.00
0 0 0 140 140.00 560 560

-100 -200 -200 -200 -200

-490 -490 -490
-100 -200 -200 -200 -690 -490 -490

-100 -200 -200 -60 -550.00 70 70

($584.05)

caja con 300 aviones a un costo de 12,5 millones por avin millones de dlares
1967 1968 1969 1970 1971 1972 1973
0 1 2 3 4 5 6
600.00 600.00
200.00 200.00 200.00 200.00
0 0 0 200 200.00 800 800

-100 -200 -200 -200 -200 -60

-625 -625 -625
-100 -200 -200 -200 -825 -685 -625

-100 -200 -200 0 -625.00 115 175

($311.64)

de flujo de efectivo para punto de equilibrio de millones de dlares

1967 1968 1969 1970 1971 1972 1973
0 1 2 3 4 5 6
960.00 960.00
320.00 320.00 320.00 320.00
0 0 0 320 320.00 1280 1280

-100 -200 -200 -200 -200

-1000 -1000 -1000
-100 -200 -200 -200 -1200 -1000 -1000
 -100 -200 -200 120 -880.00 280 280
$1.37
80 aviones.
 1974 1975 1976 1977
7 8 9 10
420.00 420.00 420.00 420.00
140.00 140.00
560 560 420 420.00

-490 -490 -490

-490 -490 -490 0

70 70 -70 420.00

s
1974 1975 1976 1977
7 8 9 10
600.00 600.00 600.00 600.00
200.00 200.00
800 800 600 600.00

-625 -625 -625

-625 -625 -625 0

175 175 -25 600.00

1974 1975 1976 1977

7 8 9 10
960.00 960.00 960.00 960.00
320.00 320.00
1280 1280 960 960.00

-1000 -1000 -1000

-1000 -1000 -1000 0
280 280 -40 960.00
Assumptions
Total aviones = 210
Duracin (aos) = 6
Planos por ao = 35
Costo por plano (en millones) = 14
Costo de produccin anual = 490
Ingresos por avin (millones) = 16
Ventas anuales = 560
Flujo de caja para depsito = 140.00
Flujo de caja para ao de venta = 420.00
Aos recibidas temprano = 2
% de depsitos recibidos = 25%
Pre-Tri Star = 9%
Tasa de descuento = 10%

Supuestos
Total aviones = 300
Duracin (aos) = 6
Planes per year = 50
Cost per plane (millions) = 12.5
Annual production cost = 625
Revenue per plane (millions)= 16
Annual sales = 800
Cash flow for deposit = 200.00
Cash flow for sale year = 600.00
Years received early = 2
% deposits received= 25%
Pre-Tri Star = 9%
Discount rate = 10%

Assumptions
Total Planes = 480
Duration (years) = 6
Planes per year = 80
Cost per plane (millions) = 12.5
Annual production cost = 1000
Revenue per plane (millions)= 16
Annual sales = 1280
Cash flow for deposit = 320.00
Cash flow for sale year = 960.00
Years received early = 2
% deposits received= 25%
Pre-Tri Star = 9%
Discount rate = 10%