The document appears to contain information about capital expenditure for a company across multiple years and assets. It includes:
- Capex summaries for FY18 and FY17 for machines 1-2 and buildings 1-2, showing expenditures and percentage increases year-over-year.
- A breakdown of capital expenditure details for FY18 across various asset categories totaling $2.1 million.
- An explanation and comparison of various capital expenditure valuation methods including discounted payback period, net present value, and internal rate of return. Case examples and calculations are provided for each.
- The document indicates the discounted payback period method is the most suitable choice for valuation based on the information and calculations shown
2. Capex Summary (option 1 of 2)
2
2.3
1.8
2
0.7
1.2
3
1.4
2.4
FY18 FY17
67%
32%
21%
78%
Machine 2
Building 1
Building 2
Machine 1
This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
3. Capex Summary (option 2 of 2)
2.3
1.8
2
0.7
1.2
3
1.4
2.4
FY18 FY17
67%
32%
21%
78%
Machine 2
Building 1
Building 2
Machine 1
This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
3
4. Capital Expenditure Dteails – FY 18
Preparing an asset to be used
in business
Restoring property or adapting
it to a new or different use
Starting or acquiring a new
business
Acquiring fixed, & in some
cases, intangible assets
Repairing an existing asset so as
to improve its useful life
Upgrading an existing asset if it
results in a superior fixture
$600,000 $300,000 $400,000
$300,000 $800,000$500,000
4
5. 5
Capital
Expenditure
Valuation
Methods
Net Present Value Method
This slide is 100% editable. Adapt it to your needs
and capture your audience's attention.
Discounted Payback Period
This slide is 100% editable. Adapt it to your needs
and capture your audience's attention.
Internal Rate of Return
This slide is 100% editable. Adapt it to your needs
and capture your audience's attention.
6. Discounted Payback Period
6
Advantages
It is easy to understand &
calculate
This method helps in selection of a
profitable project from among mutually
exclusive projects very easily
It takes into account the time value of
money
Disadvantages
It does not take into account the cash
inflows that occur after the payback
period
Selection of appropriate rate for
discounting the cash flows is another
problem
Instead of normal
cash inflows, DCF is
employed to
calculate the
payback period
Time required to
recover the initial
cost of investment
through discounted
inflows of a project
7. Discounted Payback Period – Valuation Summary
Year
Cash Inflows (Rs)
(A)
PV Factor at
10% (B)
Present
Value
(A*B)
Cumulative
PV of Cash
Inlows
1 12,000 0.909 10,908 10,908
2 14,000 0.826 11,564 22,472
3 16,000 0.751 12,016 34,488
4 15,000 0.683 10,245 44,733
5 14,000 0.621 8,694 53,427
Year Cash Inflows
PV Factor at
10%
1 12,000 0.909
2 14,000 0.826
3 16,000 0.751
4 15,000 0.683
5 14,000 0.621
3 years + ( 43000 – 34,488) /10245
3 years + 0.83 years
3.83 years
Discounted
Payback Period
Cost of the Project
Rs 43,000
7
8. Sum of PV of Cash Inflows - Sum of PV of Cash
Outflows
Calculation
Under this method a stipulated rate of interest,
usually the cost of capital, is used to discount the
cash inflows
Rules to Accept or Reject a Project
NPV < 0 Reject the Project
NPV > 0 Accept the Project
NPV = 0 Be Indifferent
Net
Present
Value
Method
8
9. 9
NPV
Selection of the discount rate for
discounting of cash inflows is a
problem
Difficult to understand & calculate
Disadvantages
Selection of project under mutually exclusive
projects is easy
Takes into account the entire series of cash
flows for analysis
Recognizes the time value of money
Advantages
NPV Advantages &
Disadvantages
01
02
10. Net Present Value – Valuation Summary
NPV
2,54,680 – 2,00,000
Rs 54,680
Year
Cash Inflows (Rs)
(A)
PV Factor at 10%
(B)
Present Value
(A*B)
1 1,10,000 0.909 99,990
2 1,60,000 0.826 1,32,160
3 30,000 0.751 22,530
2,54,680
10
11. InternalRateofReturn
The rate of discount which equates the Present
Value of expected cash inflows from a project
with Present Value of cash outflow
It is the rate which makes the Net Present Value
of a project equal to zero
IRR > Cost of Capital
IRR < Cost of Capital
IRR = Cost of Capital
Reject the Project
Accept the Project
Be Indifferent
Rules
11
12. Internal Rate of Return
12
DisadvantagesAdvantages
It Considers Cash Inflows & Cash Outflows
Over The Entire Life Of The Project
In Case Of Mutually Exclusive Projects, It
Helps Select A Project Very Easily
It Recognizes The Time
Value Of Money
Sometimes A Project May Have
Multiple IRR Which Confuses Users
Projects Selected On The Basis Of
Higher IRR May Not Be Profitable In All
Cases
It Involves Lengthy &
Tedious Calculations
13. Internal Rate Of Return-Valuation Summary
13
Alternatively, Simple
Interpolation Method
11.34 %IRR
( IRR – 11 ) / 12-11 ( 3.08 – 3.1024 ) / 3.0373 - 3.1024=
( IRR – 11 ) / 1 ( -0.0224 ) / (- 0.0651)=
IRR – 11 0.34=
Payback
Period
Initial Investment
Annual Cash Inflow
IRR is 11% which corresponds to 3.1024
The nearest value
corresponding to 3.08 in the
present value of annuity table
for 4 years
3.1024
3.08
40000
13000
Rate Discount Factor
11% 3.1024
IRR 3.08
12% 3.0373
14. Discounted Payback Period
The most suitable choice for valuation
Valuation Methods Comparison
Valuation Method Results Comments
Discounted
Payback Period
3.83 Years
▪ Your Text Here
▪ Your Text Here
Net Present Value 54,680
▪ Your Text Here
▪ Your Text Here
Internal Rate
of Return
11.34%
▪ Your Text Here
▪ Your Text Here
14
15. ➢ This slide is 100% editable. Adapt it to your needs and
capture your audience's attention.
➢ This slide is 100% editable. Adapt it to your needs and
capture your audience's attention.
➢ This slide is 100% editable. Adapt it to your needs and
capture your audience's attention.
Coffee Break
15
18. Column Chart
0%
10%
20%
30%
40%
50%
60%
2014 2015 2016 2017
This slide is 100% editable. Adapt it to your needs and
capture your audience's attention.
0%
10%
20%
30%
40%
50%
60%
2014 2015 2016 2017
This slide is 100% editable. Adapt it to your needs and
capture your audience's attention.
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
➢ Product 01 ➢ Product 02
18
19. Clustered Bar
0 10 20 30 40 50 60 70 80 90 100
Q1
Q2
Q3
Q4
Unit Count
➢ Product 01 ➢ Product 03➢ Product 02
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
19
20. Line Chart
0
10
20
30
40
50
60
70
80
FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08
Inpercentage
In years
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
➢ Product 01 ➢ Product 02
20
21. Area Chart
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
DecNovOctSepAugJulJunMayAprMarFebJan
This slide is 100% editable. Adapt it to
your needs and capture your
audience's attention.
➢ Product 01
This slide is 100% editable. Adapt it to
your needs and capture your
audience's attention.
➢ Product 02
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
21
25. 25
Vision
This slide is 100% editable. Adapt it to your needs and
capture your audience's attention.
Mission
This slide is 100% editable. Adapt it to your needs and
capture your audience's attention.
Goals
This slide is 100% editable. Adapt it to your needs and
capture your audience's attention.
Our Mission
26. 26
Name Here
Designation
This slide is 100% editable. Adapt
it to your needs and capture your
audience's attention.
Name Here
Designation
This slide is 100% editable. Adapt
it to your needs and capture your
audience's attention.
Name Here
Designation
This slide is 100% editable. Adapt
it to your needs and capture your
audience's attention.
Our
Team
27. 27
01 02 03
This slide is 100% editable. Adapt it
to your needs and capture your
audience's attention.
We Are
Professional
This slide is 100% editable. Adapt it
to your needs and capture your
audience's attention.
We Are
Creative
This slide is 100% editable. Adapt it
to your needs and capture your
audience's attention.
We Are
Talented
About
Us
28. Our Goal
This slide is 100% editable.
Adapt it to your needs and capture
your audience's attention.
This slide is 100% editable.
Adapt it to your needs and capture
your audience's attention.
This slide is 100% editable.
Adapt it to your needs and capture
your audience's attention.
This slide is 100% editable.
Adapt it to your needs and capture
your audience's attention.
28
30. 30
This slide is 100% editable. Adapt
it to your needs and capture your
audience's attention.
Current
This slide is 100% editable. Adapt
it to your needs and capture your
audience's attention.
Future
Comparison
31. This slide is 100% editable. Adapt it to
your needs and capture your
audience's attention.
35%
This slide is 100% editable. Adapt it to
your needs and capture your
audience's attention.
70%
31
Financial
32. Quotes
32
In Order To Inspire
People, That’s
Going To Have To
Come From
Somewhere Deep
Inside Of You.
Jeff Weiner
..CEO LinkedIn
33. Timeline
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
20152014 2016 2017 2018
33
34. Our Target
01
0203
04
This slide is 100% editable. Adapt
it to your needs and capture your
audience's attention.
This slide is 100% editable.
Adapt it to your needs and capture
your audience's attention.
This slide is 100% editable. Adapt
it to your needs and capture your
audience's attention.
This slide is 100% editable. Adapt
it to your needs and capture your
audience's attention.
34
35. Puzzle
This slide is 100% editable. Adapt it to your
needs and capture your audience's
attention.
This slide is 100% editable. Adapt it to your
needs and capture your audience's
attention.
This slide is 100% editable. Adapt it to
your needs and capture your audience's
attention.
This slide is 100% editable. Adapt it to
your needs and capture your audience's
attention.
01
02
03
04
35
36. Location
Russia
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
Australia
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.Sudan
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
Brazil
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
30%
40%
20%
36%
25%
United States
Of America
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
36
37. Mind Map
➢ This slide is 100% editable. Adapt it to your needs and
capture your audience's attention.
➢ This slide is 100% editable. Adapt it to your needs and
capture your audience's attention.
➢ This slide is 100% editable. Adapt it to your needs and
capture your audience's attention.
➢ This slide is 100% editable. Adapt it to your needs and
capture your audience's attention.
37
38. Post It
01
02
03
04
This slide is 100% editable. Adapt
it to your needs and capture your
audience's attention.
This slide is 100% editable. Adapt
it to your needs and capture your
audience's attention.
This slide is 100% editable. Adapt
it to your needs and capture your
audience's attention.
This slide is 100% editable. Adapt
it to your needs and capture your
audience's attention.
38
39. Venn
01 02
03
04This slide is 100% editable.
Adapt it to your needs and capture
your audience's attention.
This slide is 100% editable.
Adapt it to your needs and capture
your audience's attention.
This slide is 100% editable.
Adapt it to your needs and capture
your audience's attention.
This slide is 100% editable.
Adapt it to your needs and capture
your audience's attention.
39
40. Bulb Or Idea
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
Text Here
4
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
Text Here
2
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
Text Here
1
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
Text Here
3
This slide is 100% editable.
Adapt it to your needs and
capture your audience's
attention.
Text Here
5
40