1: NPV and EVA investment decision analysis of agricultural water project (unit: 10 thousand RMB) Time (year) 100000 1 2 3 4 investment tion income 80000 80000 80000 80000 tion cost 45000 45000 45000 45000 ciation 20000 20000 20000 20000 ne taxation AT tax cash flow 3750 3750 3750 3750 11250 11250 11250 11250 31250 31250 31250 31250 18462 al cost 10000 10000 10000 10000 1250 1250 1250 1250 18462

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Determine the cash inflow of the project

Table 1: NPV and EVA investment decision analysis of agricultural water project (unit: 10 thousand RMB)
Time (year)
3
4
Initial investment
100000
Operation income
Operation cost
Depreciation
Income taxation
80000
80000
80000
80000
80000
45000
45000
45000
45000
45000
20000
20000
20000
20000
20000
3750
3750
3750
3750
3750
NOPAT
11250
11250
11250
11250
11250
After-tax cash flow
31250
31250
31250
31250
31250
NPV
18462
Capital cost
EVA
10000
10000
10000
10000
10000
1250
1250
1250
1250
1250
MVA
18462
Transcribed Image Text:Table 1: NPV and EVA investment decision analysis of agricultural water project (unit: 10 thousand RMB) Time (year) 3 4 Initial investment 100000 Operation income Operation cost Depreciation Income taxation 80000 80000 80000 80000 80000 45000 45000 45000 45000 45000 20000 20000 20000 20000 20000 3750 3750 3750 3750 3750 NOPAT 11250 11250 11250 11250 11250 After-tax cash flow 31250 31250 31250 31250 31250 NPV 18462 Capital cost EVA 10000 10000 10000 10000 10000 1250 1250 1250 1250 1250 MVA 18462
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