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Investment appraisal
1.5 Layout of a FCF forecast
T 0 T 1 T 2 T 3 T 4 T 5
Revenues (in nominal terms) X X X X X
Costs (in nominal terms) (X) (X) (X) (X) (X)
Tax allowable depreciation (X) (X) (X) (X) (X)
Taxable profit X X X X X
Tax (X) (X) (X) (X) (X)
Add back: Tax allowable depreciation X X X X X
(NOT a cash flow)
Investment in non- current assets (X)
Residual value of non-current assets X
Incremental investment in working capital (X) (X) (X) (X) (X) X
FCF (X) X X X X X
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