|
MegaWash |
0 |
1 |
2 |
3 |
4 |
5 |
|
USD/MXN |
$
0.750 |
$ 0.757 |
$ 0.765 |
$ 0.772 |
$ 0.780 |
$ 0.787 |
|
Investment |
-3,500,000 |
|
|
|
|
|
| NWC |
-150,000 |
|
|
|
|
150,000 |
|
Salvage |
|
|
|
|
|
600,000 |
|
Sales |
|
800,000 |
800,000 |
800,000 |
800,000 |
800,000 |
|
Expenses |
|
-400,000 |
-400,000 |
-400,000 |
-400,000 |
-400,000 |
|
Depreciation |
|
-700,000 |
-700,000 |
-700,000 |
-700,000 |
-700,000 |
| EBT |
|
-300,000 |
-300,000 |
-300,000 |
-300,000 |
-300,000 |
| Tax
(35%) |
|
105,000 |
105,000 |
105,000 |
105,000 |
105,000 |
| Net
Income |
|
-195,000 |
-195,000 |
-195,000 |
-195,000 |
-195,000 |
| CF
(MXN) |
-3,650,000 |
505,000 |
505,000 |
505,000 |
505,000 |
1,045,000 |
| CF
(USD) |
-$2,737,500 |
$382,463 |
$386,213 |
$389,999 |
$393,823 |
$822,930 |
| IRR |
-4.06% |
|
|
|
|
|
Forward exchange rate (USD/MXN) = Spot rate x (1 + US rate) / (1
+ MX rate) = 0.750 x 1.03 / 1.02 = $0.757 / MXN and so on for other
years
Depreciation = 3,500,000 / 5 = 700,000
CF (MXN) = Investment + NWC + Salvage x (1 - tax) + Net Income +
Depreciation
CF (USD) = CF (MXN) x USD / MXN
IRR can be calculated using the same function on a calculator or
excel given the cash flows.
