Cash Flow Planning Workbook

Enter inputs in colored cells

Initial Cash Investment
Pretax Reinvestment Rate
After-Tax Reinvestment Rate
Pretax Discount Rate
After-Tax Discount Rate
Gross Sales
Cost of Sales
Cost Center 1 Costs
Cost Center 2 Costs
Cost Center 3 Costs
Interest Expense
Marginal Income Tax Rate
Depreciation
Other Noncash Expenses
Debt Principal Payments
Other Cash Nonexpenses
Gross Residual
Transaction/Disposal Costs
Outstanding Debt on Asset(s)
Nontaxable Portion of Residual
Marginal Tax Rate on Residual

Period 1

Period 2

Period 3

Period 4

$10,000
2,500
3,000
1,000
1,000
1,000
33%
$2,500
0
0
0
25,000
1,250
10,000
22,500
28%

$10,000
2,500
3,000
1,000
1,000
1,000
33%
$2,500
0
0
0
25,000
1,250
10,000
20,000
28%

$10,000
2,500
3,000
1,000
1,000
1,000
33%
$2,500
0
0
0
25,000
1,250
10,000
17,500
28%

$10,000
2,500
3,000
1,000
1,000
1,000
33%
$2,500
0
0
0
25,000
1,250
10,000
15,000
28%

Period 1
$10,000
(2,500)
7,500

Period 2
$10,000
(2,500)
7,500

Period 3
$10,000
(2,500)
7,500

Period 4
$10,000
(2,500)
7,500

Operating Expenses
Cost Center 1
Cost Center 2
Cost Center 3
Total Operating Expenses
Operating Income

3,000
1,000
1,000
5,000
2,500

3,000
1,000
1,000
5,000
2,500

3,000
1,000
1,000
5,000
2,500

3,000
1,000
1,000
5,000
2,500

Interest Expense
Net Income (Loss) Before Taxes

1,000
1,500

1,000
1,500

1,000
1,500

1,000
1,500

Income Tax Expenses (Savings)

Net Income (Loss) After Taxes

495
$1,005

495
$1,005

495
$1,005

495
$1,005

Period 1
$25,000
(1,250)
23,750

Period 2
$25,000
(1,250)
23,750

Period 3
$25,000
(1,250)
23,750

Period 4
$25,000
(1,250)
23,750

22,500
1,250

20,000
3,750

17,500
6,250

15,000
8,750

350
$900

1,050
$2,700

1,750
$4,500

2,450
$6,300

Profit and Loss Statement

Gross Sales
Less: Cost of Sales
Gross Margin

Gain and Loss Statement

Gross Residual
Less: Transaction/Disposal Costs
Net Residual
Nontaxable Portion of Residual
Pretax Gain (Loss) on Disposal
Income Tax Expenses (Savings)
After-Tax Gain (Loss) on Disposal

Period 0
$15,000
12.00%
8.00%
12.00%
8.00%

Operating Cash Flows

Period 0

Period 1

Period 2

Period 3

Period 4

$1,500

$1,500

$1,500

$1,500

2,500
0

2,500
0

2,500
0

2,500
0

0
0
4,000

0
0
4,000

0
0
4,000

Net Income Before Taxes

Addbacks of Noncash Expenses
Depreciation
Other
Deducts of Cash Nonexpenses
Debt Principal Payments
Other
Pretax Operating Cash Flow

($15,000)

0
0
4,000

Income Tax Expenses (Savings)

After-Tax Operating Cash Flow

($15,000)

495
$3,505

495
$3,505

495
$3,505

495
$3,505

Gross Residual
Less: Transaction/Sales Costs
Less: Outstanding Debt
Pretax Liquidation Cash Flow

Period 1
$25,000
(1,250)
(10,000)
13,750

Period 2
$25,000
(1,250)
(10,000)
13,750

Period 3
$25,000
(1,250)
(10,000)
13,750

Period 4
$25,000
(1,250)
(10,000)
13,750

Income Tax Expenses (Savings)

After-Tax Liquidation Cash Flow

350
$13,400

1,050
$12,700

1,750
$12,000

2,450
$11,300

Period 1
18.33%
12.70%

Period 2
22.93%
16.28%

Period 3
24.47%
17.76%

Period 4
25.23%
18.68%

18.33%
12.70%

21.74%
15.44%

22.01%
15.94%

21.67%
15.93%

$848
653

$2,722
2,139

$4,394
3,559

$5,888
4,915

($15,000) ($11,000)

($7,000)

($3,000)

($15,000) ($11,495)

($7,990)

Liquidation Cash Flows

Cash Flow Analysis

Pretax IRR
After-Tax IRR
Pretax Adjusted IRR
After-Tax Adjusted IRR
Pretax Net Present Value
After-Tax Net Present Value
Pretax Cumulative Cash Flows
Pretax Payback Period
After-Tax Cumulative Cash Flows
After-Tax Payback Period

Period 0

Period 0

$1,000
Payback
($4,485)
($980)

Pretax Cash Flow Scenarios

Number of Periods Held:
1
2
3
4
5
6
7
8
9
10

Period 0
($15,000)
(15,000)
(15,000)
(15,000)
(15,000)
(15,000)
(15,000)
(15,000)
(15,000)
(15,000)

Period 1
$17,750
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000

Period 2
$0
17,750
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000

Period 3
$0
0
17,750
4,000
4,000
4,000
4,000
4,000
4,000
4,000

Period 4
$0
0
0
17,750
4,000
4,000
4,000
4,000
4,000
4,000

Period 0
($15,000)
(15,000)
(15,000)
(15,000)
(15,000)
(15,000)
(15,000)
(15,000)
(15,000)
(15,000)

Period 1
$16,905
3,505
3,505
3,505
3,505
3,505
3,505
3,505
3,505
3,505

Period 2
$0
16,205
3,505
3,505
3,505
3,505
3,505
3,505
3,505
3,505

Period 3
$0
0
15,505
3,505
3,505
3,505
3,505
3,505
3,505
3,505

Period 4
$0
0
0
14,805
3,505
3,505
3,505
3,505
3,505
3,505

After-Tax Cash Flow Scenarios

Number of Periods Held:
1
2
3
4
5
6
7
8
9
10

Period 5

Period 6

Period 7

Period 8

Period 9 Period 10

$10,000
2,500
3,000
1,000
1,000
1,000
33%
$2,500
0
0
0
25,000
1,250
10,000
12,500
28%

$10,000
2,500
3,000
1,000
1,000
1,000
33%
$2,500
0
0
0
25,000
1,250
10,000
10,000
28%

$10,000
2,500
3,000
1,000
1,000
1,000
33%
$2,500
0
0
0
25,000
1,250
10,000
7,500
28%

$10,000
2,500
3,000
1,000
1,000
1,000
33%
$2,500
0
0
0
25,000
1,250
10,000
5,000
28%

$10,000
2,500
3,000
1,000
1,000
1,000
33%
$2,500
0
0
0
25,000
1,250
10,000
2,500
28%

Period 5
$10,000
(2,500)
7,500

Period 6
$10,000
(2,500)
7,500

Period 7
$10,000
(2,500)
7,500

Period 8
$10,000
(2,500)
7,500

Period 9 Period 10
$10,000 $10,000
(2,500)
(2,500)
7,500
7,500

3,000
1,000
1,000
5,000
2,500

3,000
1,000
1,000
5,000
2,500

3,000
1,000
1,000
5,000
2,500

3,000
1,000
1,000
5,000
2,500

3,000
1,000
1,000
5,000
2,500

3,000
1,000
1,000
5,000
2,500

1,000
1,500

1,000
1,500

1,000
1,500

1,000
1,500

1,000
1,500

1,000
1,500

495
$1,005

495
$1,005

495
$1,005

495
$1,005

495
$1,005

495
$1,005

Period 5
$25,000
(1,250)
23,750

Period 6
$25,000
(1,250)
23,750

Period 7
$25,000
(1,250)
23,750

Period 8
$25,000
(1,250)
23,750

12,500
11,250

10,000
13,750

7,500
16,250

5,000
18,750

2,500
21,250

0
23,750

3,150
$8,100

3,850
$9,900

4,550
$11,700

5,250
$13,500

5,950
$15,300

6,650
$17,100

$10,000
2,500
3,000
1,000
1,000
1,000
33%
$2,500
0
0
0
25,000
1,250
10,000
0
28%

Period 9 Period 10
$25,000 $25,000
(1,250)
(1,250)
23,750
23,750

Period 5

Period 6

Period 7

Period 8

Period 9 Period 10

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

2,500
0

2,500
0

2,500
0

2,500
0

2,500
0

2,500
0

0
0
4,000

0
0
4,000

0
0
4,000

0
0
4,000

0
0
4,000

0
0
4,000

495
$3,505

495
$3,505

495
$3,505

495
$3,505

495
$3,505

495
$3,505

Period 5
$25,000
(1,250)
(10,000)
13,750

Period 6
$25,000
(1,250)
(10,000)
13,750

Period 7
$25,000
(1,250)
(10,000)
13,750

Period 8
$25,000
(1,250)
(10,000)
13,750

3,150
$10,600

3,850
$9,900

4,550
$9,200

5,250
$8,500

Period 5
25.66%
19.38%

Period 6
25.94%
19.94%

Period 7
26.13%
20.41%

Period 8
26.27%
20.82%

21.16%
15.75%

20.63%
15.50%

20.11%
15.23%

19.64%
14.97%

19.20%
14.71%

18.79%
14.46%

$7,221
6,209

$8,412
7,442

$9,475
8,616

$10,424
9,734

$11,271
10,797

$12,028
11,808

$5,000

$9,000

$13,000

$17,000

$21,000

$38,750

$2,525
Payback

$6,030

$9,535

$13,040

$16,545

$27,150

Period 9 Period 10
$25,000 $25,000
(1,250)
(1,250)
(10,000) (10,000)
13,750
13,750
5,950
$7,800

6,650
$7,100

Period 9 Period 10
26.36%
26.43%
21.17%
21.48%

Period 5
$0
0
0
0
17,750
4,000
4,000
4,000
4,000
4,000

Period 6
$0
0
0
0
0
17,750
4,000
4,000
4,000
4,000

Period 7
$0
0
0
0
0
0
17,750
4,000
4,000
4,000

Period 8
$0
0
0
0
0
0
0
17,750
4,000
4,000

Period 9 Period 10
$0
$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
17,750
0
4,000
17,750

Period 5
$0
0
0
0
14,105
3,505
3,505
3,505
3,505
3,505

Period 6
$0
0
0
0
0
13,405
3,505
3,505
3,505
3,505

Period 7
$0
0
0
0
0
0
12,705
3,505
3,505
3,505

Period 8
$0
0
0
0
0
0
0
12,005
3,505
3,505

Period 9 Period 10
$0
$0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
11,305
0
3,505
10,605