Professional Documents
Culture Documents
$
Cost of Capital
NPV
IRR
Payback
0
(35,000.00)
12%
(1,859.16)
10.95%
7 years
Time
Cash Flow
Cost of Capital
NPV
IRR
NPV
C
Time
Cash Flows
Reinvestment
Net CFs
PV of CF
Cost of Capital
NPV
IRR
4% perpetuity
20% perpetuity
50000
12%
15,000.00
15.43%
#VALUE!
3
25%
A
Investment cost
Subsidy pmt
0
-1000000
2 year payback
Discount rate
First 2 yrs CFs
PV of first 2 CFs
Subsidy pmt
C
0
-1,000,000
Discount rate
NPV
Subsidy pmt
0
-826101.72928664
0.243478
APR
Subsidy pmt
4
110,000
1,110,000
1
5,000.00
0
-35,000
12%
2,500.00
14
.
### . $ 5,000.00
1
4500 Perpetuity
1
2
-35000 $ 5,000.00 $ 5,000.00
12.86%
0.00E+00
0
-35,000
1
5000
1000
4000
2
5200 perpetuity
1040 perpetuity
4160 perpetuity
Year 3
IRR
44,000
23,000
70,000
13,000
44,000
23,000
70,000
14,000
(122,101.18)
1,122,101.18
297391.2
237912.96
1
371,739
2
371,739
3
371,739
23,000
70,000
12,000
15
$ 5,000.00
NPV
11% ($3,468.81)
18%
$2,514.18
31% $34,825.76
1208% $28,469.88
4
371,739
20%
743478
567,934.58
256,522.00
1
371,739
20%
($37,666.40)
$112,666.40
1
371,739
0.39998359
173898.270713
2
371,739
3
371,739
4
371,739
2
371,739
3
371,739
4
371,739
1)
2)
3)
4)
3
5,000.00
Time
Cash Flows
IRR = 25%
Two year payback
NPV = $75,000
ARR = 40%
4
###
$
$
$
$
$
0
(1,000,000.00)
(877,898.82)
(743,478.00)
(887,333.60)
(826,101.73)
5
###
1
371,739
371,739
371,739
371,739
371,739
6
###
2
###
###
###
###
###
7
###
3
371,739
371,739
371,739
371,739
371,739
8
###
4
###
###
###
###
###
25%
10
5,000.00
$
$
$
$
$
NPV
(37,666.40)
84,434.78
218,855.60
75,000.00
136,231.87
11
12
### $ 5,000.00 $
IRR
18.00%
25.00%
34.90%
24.40%
28.49%
Dst Rate
20%
20%
20%
20%
20%
13
5,000.00
Subsidy Pmt
$
$
$
$
122,101.18
256,522.00
112,666.40
173,898.27
14
###
15
###
Year
Time
Innitial Outlay
Revenue
Deposits
Production Cost
CFs
PV of CFs
Value
Innitial Outlay
Revenue
Deposits
Production Cost
CFs
PV of CFs
Value
1967
0
-100
1968
1
-200
1969
2
-200
1970
3
-200
1971
4
-200
140
140
-490
-100
-200
-200
-60
-550
$ (100.00) $ (181.82) $ (165.29) $ (45.08) $ (375.66) $
$ (584.05)
-100
-200
-200
-200
184
1972
5
420
140
-490
70
43.46
-200
184
-575
-100
-200
-200
-16
-591
$ (100.00) $ (181.82) $ (165.29) $ (12.02) $ (403.66) $
$ (311.15)
552
184
-575
161
99.97
1973
6
420
140
-490
70
39.51 $
552
184
-575
161
90.88 $
1974
7
420
140
-490
70
35.92 $
552
184
-575
161
82.62 $
1975
8
1976
9
1977
10
420
420
420
140
-490
-490
70
-70
420
32.66 $ (29.69) $ 161.93
552
184
-575
161
75.11 $
552
552
-575
-23
552
(9.75) $ 212.82
Output
Cost
Sales
Discount Ra
35
14
16
10%
Output
Cost
Sales
Discount Ra
46
12.5
16
10%
Project
3) Build a New Stand
4) Rent a Large Stand
Discount rate
Incremental 3-4