EXAMINATION TICKET $4$

Characteristic of the innovation process

Task

Total initial investment enterprise is $350$ thousand. UAH. The project will last $4$ years. In the

first year is to get the loss of $200$ thousand. UAH. And since $2$ years profit: $2$ year $-250$ thousand.

UAH., $3$ year $-275$ thousand. UAH., $4$ year $-350$ thousand. UAH. The discount rate is $12\%.$ Calcu$-$

late the net present value of investment.

NPVI$=NPVP-\frac{D_1}{(1+k)}+\frac{D_2}{(1+k{)}^2}+\frac{D3}{(1+k{)}^3}$

Solution

where D $--$profit loss for the year, UAH $.$;

k $-$ rate of inflation, $\%.$

NPVP$-$ Net Present Value of the project