The following reports are for the “Replace” analysis using the “Replace Revenue & Expenses Yearly Template”. The “Keep” reports are similar to the “Replace” reports.

The key report is the “Incremental Cash Flow” report where the Keep Cash Flow is subtracted from the Replace Cash Flow to establish the financial advantage or disadvantage of replacing the equipment compared to keeping the equipment or facilities.

The reports are for the following replacement decision:

A manufacturing organization is considering replacing aging production equipment used to produce plastic bottles with a more technologically advanced model which will result in:

• Less rejected products resulting in lower manufacturing costs per unit
• The new computerized system allows faster set up and less down time
• Increase in sales because of increased production capacity
• Lower labor costs per unit

Should the company invest in the new equipment?

The sample set of key reports below are for the Replace Analysis. The Comparison Report and the Increment Cash Flow report compare “Keep” with “Replace”

Reports & Graphs

Keep versus Replace Reports

• Incremental Cash Flow Analysis
• Comparison Report

Replace Reports

• Income & Expense Statement Yearly
• Operating Cash Flow Yearly
• Working Capital Yearly
• Net Cash Flow (Before & After Tax)
• Revenue & Expense Calculations Yearly
• Cash Flow on Disposition
• Graphs
• Input Data Summary
• Projection Descriptions
• Capital Cost Allowance Schedule
• Financing

• All reports(19 pages or more) (Excludes the Incremental Cash Flow and Project Comparison reports)

Note: There are many more reports available including monthly reports.