Page 105 - DBP5043

MEASURING A PROJECT’S BENEFITS

AND COSTS (RELEVANT CASH FLOW)

GENERAL FORMAT INITIAL OUTLAY

RM

Cash Outflow:

Cost Of New Assets xx
Purchase Price xx

Import Duty xx
Shipping Cost xx
Installation xx

Insurance xx
Training (After Tax) xxx

Cost Of The Machine

investment tax claims

(A * rate * tax rate of investment tax credits) xx
Add: Working Capital Requirement (xx) xx

- Increase In Inventories
- Increases In Account Payable
xxx

Less Cash inflow

- Sales proceed of ole machine xx
- Tax gain (xx × 28%) xx

Net initial outlay xxxx