Question
As a group: Review Figure 3 that shows the cash flows estimated before and after Katrina. Calculate the NPV of cash flows for each stream
As a group: Review Figure 3 that shows the cash flows estimated before and after Katrina. Calculate the NPV of cash flows for each stream of cash before and after Katrina using a discount rate of 9%. Remember that Figure 3 uses monthly cash flows and the discount rate is an annual rate. Use the following format (only part of Figure 3 is shown below).
| Old Sales Estimate | Old NPV of cash flow | New Sales Estimate | New NPV of cash flow |
Date | for PowrFlo 500 (units) | sales price of $499.00 | for PowrFlo 500 (units) | sales price of $499.00 |
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Oct-05 | 350 | Calculate this | 2700 | Calculate this |
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