Get Equity Analysis Capital Budget

The Equity Analysis Capital Budget is a vital tool for assessing the financial viability of investment opportunities. This guide provides comprehensive, step-by-step instructions on effectively completing the form online, ensuring clarity and precision throughout the process.

Follow the steps to fill out the Equity Analysis Capital Budget

1. Click the ‘Get Form’ button to obtain the form and open it in the editor.
2. Provide the initial investment details. Enter the initial investment amount, opportunity cost (if applicable), the expected lifetime of the investment, and the salvage value at the end of the project. Select the appropriate depreciation method (1 for straight-line, 2 for double declining balance) and include any tax credits or non-depreciable investments.
3. Next, fill in the working capital section. Enter the initial investment in working capital and calculate the working capital as a percentage of revenue. Also, include the salvageable fraction at the end.
4. Proceed to the discount rate area. Input the discount rate, the risk-free rate, the market risk premium, and the debt ratio based on your financing mix. Ensure you provide the cost of borrowing if relevant.
5. For the cash flow details, enter the projected revenues for the first year, variable expenses as a percentage of revenue, fixed expenses, and the tax rate on net income.
6. Input growth rates if applicable. This section typically tracks expected revenue and expense growth over the project's duration.
7. Review the investment measures at the end of the worksheet. Verify that the calculated net present value (NPV), internal rate of return (IRR), and return on capital (ROC) align with your expectations for the project.
8. Finally, save your changes, download, print, or share the completed form as needed. Ensure all inputs are accurately captured before finalizing.

Start completing your Equity Analysis Capital Budget online today for an efficient budgeting process.