Technical cost 600,000 Annual saving of 0.

174 milion
Grand 10% Scrap value 80,000
Tax 20%
Discount rate 15%

Cash inflows Cash Outflows

Year (i) Revenue Grant Scrap Capex
0 - - - -£ 600,000
1 174,000 60,000 0 0
2 174,000
3 174,000
4 174,000
5 80,000

Initial cost £ 518,790.00

Grant 10%
Tax 20%
Discount rate 13.30%
Annual savings £ 182,000.00
Scrap value £ 60,000.00

Cash inflows Cash Outflows

Year (i) Revenue Grant Scrap Capex
0 - - - £ 518,790
1 182,000 51,879 0 0
2 182,000
3 182,000
4 182,000 £ 60,000.00
5
Annual saving of 0.174 milion
Scrap value 80,000

Cash Outflows Net Cashflow Discount Factor

Tax
-£ 600,000 1
0 £ 234,000 0.8695652174
-£ 46,800 £ 127,200 0.7561436673
-£ 25,440 £ 148,560 0.6575162324
-£ 29,712 £ 144,288 0.5717532456
0.4971767353

Cash Outflows Net Cashflow Discount Factor

Tax
-£ 518,790 1
£ 36,400 £ 197,479 0.8826125331
£ 36,400 £ 145,600 0.7790048836
£ 36,400 £ 145,600 0.6875594736
£ 48,400 £ 193,600 0.6068486086
£ -
 Present Value (PV) -1

-£ 600,000
£ 203,478
£ 96,181.47
£ 97,680.61
£ 82,497.13

Present Value (PV)

-£ 518,790
£ 174,297
£ 113,423.11
£ 100,108.66
£ 117,485.89