Spreadsheet example Name: Hugo Gameiro Number:
Relax AG option Increase by year
Direct investment 40,000.00 €
Years of depereciation 10
Personal cost per year 8,750.00 € 4%
Estimated energy cost per year 4,500.00 € 6%
Maintenance per year 900.00 € 6%
Spare parts and other costs 500.00 € 4%
Rent cost 6,000.00 € 4%
Corporate Tax 25%
Discouting rate 8%
Cash-Flow
Year 0 Year 1 Year 2 Year 3
Sales € 25,200.0 € 27,468.0 € 29,940.1
Personal Cost € 8,750.0 € 9,100.0 € 9,464.0
Energy Cost € 4,500.0 € 4,770.0 € 5,056.2
Maintenance € 900.0 € 954.0 € 1,011.2
Spare parts € 500.0 € 520.0 € 540.8
Depereciation € 4,000.0 € 4,000.0 € 4,000.0
Rent cost € 6,000.00 € 6,240.00 € 6,489.60
Profit Before Taxes 550.0 € 1,884.0 € 3,378.3 €
Taxes: € 137.50 € 471.00 € 844.57
Cash Flow: -€ 40,000.0 € 4,412.50 € 5,413.00 € 6,533.71
Discounted: -€ 40,000.00 € 4,085.65 € 4,640.78 € 5,186.67
Cumulative: -€ 40,000.00 -€ 35,914.35 -€ 31,273.58 -€ 26,086.91
Result overview:
Net Present Value: € 24,772.9
Dynamic Pay-Back: 7.01
Profitability Index: 1.62
Internal Rate of Return: 17.30%
H12300539
Sales Increase in Sales
25200 9%
Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
€ 32,634.7 € 35,571.9 € 38,773.3 € 42,262.9 € 46,066.6 € 50,212.6
€ 9,842.6 € 10,236.3 € 10,645.7 € 11,071.5 € 11,514.4 € 11,975.0
€ 5,359.6 € 5,681.1 € 6,022.0 € 6,383.3 € 6,766.3 € 7,172.3
€ 1,071.9 € 1,136.2 € 1,204.4 € 1,276.7 € 1,353.3 € 1,434.5
€ 562.4 € 584.9 € 608.3 € 632.7 € 658.0 € 684.3
€ 4,000.0 € 4,000.0 € 4,000.0 € 4,000.0 € 4,000.0 € 4,000.0
€ 6,749.18 € 7,019.15 € 7,299.92 € 7,591.91 € 7,895.59 € 8,211.41
5,049.1 € 6,914.1 € 8,992.9 € 11,306.8 € 13,879.0 € 16,735.1 €
€ 1,262.27 € 1,728.53 € 2,248.24 € 2,826.70 € 3,469.76 € 4,183.78
€ 7,786.80 € 9,185.60 € 10,744.71 € 12,480.10 € 14,409.27 € 16,551.34
€ 5,723.53 € 6,251.57 € 6,770.99 € 7,282.02 € 7,784.88 € 8,279.79
-€ 20,363.38 -€ 14,111.81 -€ 7,340.82 -€ 58.80 € 7,726.08 € 16,005.87
Year 10
€ 54,731.7
€ 12,454.0
€ 7,602.7
€ 1,520.5
€ 711.7
€ 4,000.0
€ 8,539.87
19,903.0 €
€ 4,975.75
€ 18,927.26
€ 8,766.99
€ 24,772.86
Scenario Summary
Current Values:
Changing Cells:
Personal_cost_increase 4%
Maintenance_increase 6%
Energy_cost_increase 6%
Personal_cost 8,750.00 €
Energy_cost 4,500.00 €
Direct_investment 40,000.00 €
Increase_in_sales 9%
Result Cells:
Net_Present_Value € 24,772.9
Dynamic_Pay_Back 7.01
Profitability_Index 1.62
IRR 17.30%
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
Costs increase Cost saving Higher investment
6% 4% 4%
8% 6% 6%
8% 6% 6%
8,750.00 € 7,000.00 € 8,750.00 €
4,500.00 € 3,600.00 € 4,500.00 €
40,000.00 € 40,000.00 € 50,000.00 €
9% 9% 13%
€ 17,429.7 € 40,841.9 € 50,320.8
7.54 5.74 6.53
1.44 2.02 2.01
14.98% 22.86% 20.92%
Spreadsheet example
Wellbeign AG option Increase by year
Direct investment 48,000.00 €
Years of depereciation 12
Personal cost per year 8,750.00 € 4%
Estimated energy cost per year 4,750.00 € 6%
Maintenance per year 1,000.00 € 6%
Spare parts and other costs 500.00 € 4%
Rent cost 6,000.00 € 4%
Corporate Tax 25%
Discouting rate 8%
Cash-Flow
Year 0 Year 1 Year 2 Year 3
Sales € 25,200.0 € 27,468.0 € 29,940.1
Personal Cost € 8,750.0 € 9,100.0 € 9,464.0
Energy Cost € 4,750.0 € 5,035.0 € 5,337.1
Maintenance € 1,000.0 € 1,060.0 € 1,123.6
Spare parts € 500.0 € 520.0 € 540.8
Depereciaciation € 4,000.0 € 4,000.0 € 4,000.0
Rent cost € 6,000.00 € 6,240.00 € 6,489.60
Profit Before Taxes 200.0 € 1,513.0 € 2,985.0 €
Taxes: € 50.00 € 378.25 € 746.26
Cash Flow: -€ 48,000.0 € 4,150.00 € 5,134.75 € 6,238.77
Discounted: -€ 48,000.00 € 3,842.59 € 4,402.22 € 4,952.53
Cumulative: -€ 48,000.00 -€ 44,157.41 -€ 39,755.19 -€ 34,802.65
Result overview:
Net Present Value: € 33,101.5
Dynamic Pay-Back: 8.26
Profitability Index: 1.69
Internal Rate of Return: 16.42%
Sales Increase in Sales
25200 9%
Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
€ 32,634.7 € 35,571.9 € 38,773.3 € 42,262.9 € 46,066.6 € 50,212.6
€ 9,842.6 € 10,236.3 € 10,645.7 € 11,071.5 € 11,514.4 € 11,975.0
€ 5,657.3 € 5,996.8 € 6,356.6 € 6,738.0 € 7,142.2 € 7,570.8
€ 1,191.0 € 1,262.5 € 1,338.2 € 1,418.5 € 1,503.6 € 1,593.8
€ 562.4 € 584.9 € 608.3 € 632.7 € 658.0 € 684.3
€ 4,000.0 € 4,000.0 € 4,000.0 € 4,000.0 € 4,000.0 € 4,000.0
€ 6,749.18 € 7,019.15 € 7,299.92 € 7,591.91 € 7,895.59 € 8,211.41
4,632.2 € 6,472.3 € 8,524.6 € 10,810.3 € 13,352.8 € 16,177.3 €
€ 1,158.05 € 1,618.07 € 2,131.14 € 2,702.58 € 3,338.19 € 4,044.32
€ 7,474.16 € 8,854.20 € 10,393.43 € 12,107.74 € 14,014.56 € 16,132.96
€ 5,493.73 € 6,026.02 € 6,549.62 € 7,064.75 € 7,571.63 € 8,070.49
-€ 29,308.92 -€ 23,282.90 -€ 16,733.28 -€ 9,668.53 -€ 2,096.90 € 5,973.60
Year 10 Year 11 Year 12
€ 54,731.7 € 59,657.6 € 65,026.7
€ 12,454.0 € 12,952.1 € 13,470.2
€ 8,025.0 € 8,506.5 € 9,016.9
€ 1,689.5 € 1,790.8 € 1,898.3
€ 711.7 € 740.1 € 769.7
€ 4,000.0 € 4,000.0 € 4,000.0
€ 8,539.87 € 8,881.47 € 9,236.72
19,311.7 € 22,786.5 € 26,634.9 €
€ 4,827.93 € 5,696.62 € 6,658.71
€ 18,483.78 € 21,089.85 € 23,976.14
€ 8,561.56 € 9,045.07 € 9,521.26
€ 14,535.16 € 23,580.24 € 33,101.49
Scenario Summary
Current Values: Cost increase
Changing Cells:
Increase_personal_costs 4% 6%
Increase_energy_costs 6% 8%
Increase_maintenance_costs 6% 8%
Personal_Costs 8,750.00 € 8,750.00 €
Energy_costs 4,750.00 € 4,750.00 €
Investment 48,000.00 € 48,000.00 €
Increase_in_sales 9% 9%
Result Cells:
NPV € 33,101.5 € 22,333.2
DPB 8.26 9.02
ProfibalityIndex 1.69 1.47
Internal_Rate_of_Return 16.42% 14.13%
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
Cost savings Higher investment
4% 4%
6% 6%
6% 6%
7,000.00 € 8,750.00 €
3,800.00 € 4,750.00 €
48,000.00 € 60,000.00 €
9% 13%
€ 52,210.2 € 74,604.9
6.80 7.47
2.09 2.24
20.93% 20.52%
4-
This investment should be done because both options have a higher interest rate that what is expected for this project. The
The option 2 is the one that has a higher return throughout the useful life of the investment, with a NVP of 33 101,5€ comp
However the investment 1 has a lower dynamic payback period of 7,07 years compared to investment 2 of 8,26 years whic
Both of the investments have a high profitability indices, and are very close but the second investment has a slightly higher
The IRR is better on the first investment with 17,30% compared to the second investment with 16,42%, this means that the
In conclusion, both of the investments are viable and have trade-offs between them, the investment 2 has a higher NPV an
the company has a lower risk tolerance, then the first investment could be a better option because it has a lower dynamic
long term variations and it was to make a lower investment.
s expected for this project. The company should choose the 2 option.
with a NVP of 33 101,5€ compared to 24 772,9€ of investment 1.
vestment 2 of 8,26 years which means that on the investment 1 the company will recover their investment faster (1,19 years).
nvestment has a slightly higher (1,69) compared to investment 1 (1,62), this indicates that the second investment is slightly better.
th 16,42%, this means that the first investment expects a higher return on investment.
estment 2 has a higher NPV and a profitability index, which indicates that is a better investment because it has a higher return however if
ecause it has a lower dynamic payback period which means that it takes less time to recover the investment and will have a lower risk of
aster (1,19 years).
ment is slightly better.
as a higher return however if
and will have a lower risk of
