In Week 2, you will take your income statements and start to construct a cash flow that will also extend into Week 3. For the most part, cash flows are pretty straight forward. If you're going to experience trouble, it almost always happens with working capital. Remember that once you've calculated the Total Working Capital for Year 0, all future Working Capital needs will be incremental. Almost all of the variables will be provided to you here. Using the income statement from Assignment 1, forecast a ten year cash flow using the following assumptions: Capital Expenditures of $50,000 per year. Leasehold Improvements of $10,000 per year. DSO of 75 Days. Inventory Turnover of 12 times. Accounts Payable of 30 days. Depreciation is constant. The combined Federal and State Tax Rate is 40%. There are no additional financing expenses associated with the transaction. After you have completed your cash flow forecast, calculate a Net Present Value assuming a discount rate of 15%.
INCOME STATEMENT UNITS TOTAL 2007 500000 PER UNIT TOTAL 2008 540000 PER UNIT TOTAL 2009 577800 PER UNIT TOTAL 2010 612468 PER UNIT TOTAL 2011 643091 PER UNIT TOTAL 2012 668815 PER UNIT TOTAL 2013 688880 PER UNIT TOTAL 2014 702657 PER UNIT TOTAL 2015 709684 PER UNIT TOTAL 2016 709684 PER UNIT TOTAL 2017 709684 PER UNIT TOTAL 2018 709684 PER UNIT TOTAL 2019 709684 PER UNIT REVENUE PRODUCTS SERVICE $25,000,000.00 $1,500,000.00 $50.00 $3.00 $28,080,000.00 $1,593,000.00 $52.00 $2.95 $30,946,968.00 $1,675,620.00 $53.56 $2.90 $33,459,861.80 $1,740,634.06 $54.63 $2.84 $35,484,183.44 $1,791,112.44 $55.18 $2.79 $36,903,550.78 $1,825,501.80 $55.18 $2.73 $38,010,657.30 $1,842,661.52 $55.18 $2.67 $38,770,870.45 $1,841,924.45 $55.18 $39,158,579.15 $2.62 $1,823,136.83 $55.18 $39,158,579.15 $2.57 $1,786,674.09 $55.18 $39,158,579.15 $2.52 $1,750,940.61 $55.18 $39,158,579.15 $2.47 $1,715,921.80 $55.18 $39,158,579.15 $2.42 $1,681,603.36 TOTAL REVENUE $26,500,000.00 $53.00 $29,673,000.00 $54.95 $32,622,588.00 $56.46 $35,200,495.86 $57.47 $37,275,295.88 $57.96 $38,729,052.58 $57.91 $39,853,318.82 $57.85 $40,612,794.90 $57.80 $40,981,715.98 $57.75 $40,945,253.24 $57.70 $40,909,519.76 $57.64 $57.60 EXPENSES COGS ADMINISTRATION UTILITIES RENT DEPRECIATION CONSULTANTS BAD DEBT $10,000,000.00 $5,000,000.00 $200,000.00 $500,000.00 $500,000.00 $35,000.00 $15,000.00 $20.00 $10.00 $0.40 $1.00 $1.00 $0.07 $0.03 $11,124,000.00 $5,151,600.00 $205,200.00 $513,000.00 $502,200.00 $43,200.00 $10,800.00 $20.60 $12,260,916.00 $9.54 $5,304,204.00 $0.38 $213,786.00 $0.95 $531,576.00 $0.93 $502,686.00 $0.08 $40,446.00 $0.02 $17,334.00 $21.22 $9.18 $0.37 $0.92 $0.87 $0.07 $0.03 $13,386,468.09 $5,463,330.12 $224,475.30 $558,154.80 $495,547.86 $39,548.67 $17,146.80 $21.86 $14,477,465.24 $8.92 $5,627,230.02 $0.37 $237,943.82 $0.91 $586,062.54 $0.81 $478,699.23 $0.06 $39,548.67 $0.03 $18,157.48 $22.51 $8.75 $0.37 $0.91 $0.74 $0.06 $0.03 $15,508,260.76 $5,796,046.92 $254,599.89 $615,365.67 $453,040.95 $39,548.67 $18,865.63 $23.19 $16,452,713.84 $8.67 $5,969,928.33 $0.38 $274,967.88 $0.92 $646,133.95 $0.68 $419,968.96 $0.06 $39,548.67 $0.03 $19,413.28 $23.88 $17,285,221.16 $8.67 $6,149,026.18 $0.40 $299,714.98 $0.94 $678,440.65 $0.61 $381,247.82 $0.06 $39,548.67 $0.03 $19,783.23 $24.60 $17,981,815.58 $8.75 $6,333,496.97 $0.43 $329,686.48 $0.97 $712,362.68 $0.54 $338,853.07 $0.06 $39,548.67 $0.03 $19,962.94 $25.34 $18,521,270.04 $8.92 $6,523,501.88 $0.46 $365,952.00 $1.00 $747,980.81 $0.48 $294,802.17 $0.06 $39,548.67 $0.03 $19,945.18 $26.10 $19,076,908.15 $9.19 $6,719,206.93 $0.52 $409,866.24 $1.05 $785,379.85 $0.42 $253,529.86 $0.06 $39,548.67 $0.03 $19,927.77 $26.88 $19,649,215.39 $9.47 $6,920,783.14 $0.58 $463,148.85 $1.11 $824,648.85 $0.36 $215,500.38 $0.06 $39,548.67 $0.03 $19,910.71 TOTAL EXPENSES $16,250,000.00 $32.50 $17,550,000.00 $32.50 $18,870,948.00 $32.66 $20,184,671.64 $32.96 $21,465,106.99 $33.38 $22,685,728.49 $33.92 $23,822,674.91 $34.58 $24,852,982.70 $35.37 $25,755,726.38 $36.29 $37.36 $27,304,367.47 $38.47 $28,132,755.99 $39.64 $29,001,432.45 $40.87 EBIT MARGIN $10,250,000.00 38.68% $20.50 $12,123,000.00 40.86% $22.45 $13,751,640.00 42.15% $23.80 $15,015,824.22 42.66% $24.52 $24.58 $16,043,324.10 41.42% $23.99 $16,030,643.91 40.22% $23.27 $15,759,812.20 38.81% $22.43 $15,225,989.60 37.15% $21.45 $14,432,252.50 35.25% $20.34 $13,605,152.29 33.26% $19.17 $12,741,744.96 31.17% $17.95 $16.68 EBITDA MARGIN $10,750,000.00 40.57% $21.50 $12,625,200.00 42.55% $23.38 $14,254,326.00 43.69% $24.67 $15,511,372.08 44.07% $16,450,612.88 41.28% $16,141,060.03 39.74% $15,564,842.66 37.98% $14,727,054.66 35.97% $13,858,682.15 33.88% $12,957,245.34 31.70% $15,810,188.89 42.41% $16,288,888.12 43.70% $16,496,365.05 42.59% $26,513,000.74 $40,874,500.95 $55.18 $2.37 $40,840,182.51 $57.55 $27.69 $20,238,691.85 $9.75 $7,128,406.63 $0.65 $527,989.69 $1.16 $865,881.29 $0.30 $181,020.32 $0.06 $39,548.67 $0.03 $19,894.00 $28.52 $10.04 $0.74 $1.22 $0.26 $0.06 $0.03 $11,838,750.06 28.99% $12,019,770.39 29.43% 1 CALCULATION OF GROWTH RATE IN UNITS 2008 (5400000-500000)/500000 2009 (577800-540000)/540000 8% 7% As the growth rate is falling every year by 1% thus we should predict results using using following rates: 2010 6% 2011 5% 2012 4% 2013 3% 2014 2% 2015 1% 2016 to 2019 0% 2 CALCULATION OF GROWTH RATE IN PRODUCT SELLING PRICE 2008 (52-50)/50 2009 (53.56-52)/52 4% 3% As the growth rate is falling every year by 1% thus we should predict results using using following rates: 2010 2% 2011 1% 2012 to 2019 0% 3 CALCULATION OF GROWTH RATE IN SERVICE PRICE 2008 (2.95-3)/3 2009 (2.9-2.95)/2.95 -2% -2% As the growth rate is constant but negative thus we should predict results using following rates: 2010 to 2019 -2% 4 CALCULATION OF GROWTH RATE IN COGS THESE ARE GENERALLY VARIABLE EXPENSES 2008 (20.60-20)/20 2009 (21.22-20.60)/20.60 3% 3% As the growth rate is constant thus we should predict results using following rates: 2010 to 2019 3% 5 CALCULATION OF GROWTH RATE IN ADMINISTRATION COST NOTE: THIS COST IN NEVER ANALYSED ON PER UNIT BASIS THUS WE WILL CHECK IN TOTALITY AS IT A FIXED EXPENSE 2008 (5151600-5000000)/5000000 2009 (5304204-5151600)/5151600 3% 3% As the growth rate is constant thus we should predict results using following rates: 2010 to 2019 3% 6 CALCULATION OF GROWTH RATE IN UTILITIES NOTE: THIS COST IN NEVER ANALYSED ON PER UNIT BASIS THUS WE WILL CHECK IN TOTALITY AS IT A FIXED EXPENSE 2008 (205200-200000)/200000 2009 (213786-205200)/205200 3% 4% As the growth rate is rising constantly by 1% every year thus we should predict results using following rates: 2010 5% 2011 6% 2012 7% 2013 8% 2014 9% 2015 10% 2016 11% 2017 12% 2018 13% 2019 14% 7 CALCULATION OF GROWTH RATE IN RENT NOTE: THIS COST IN NEVER ANALYSED ON PER UNIT BASIS THUS WE WILL CHECK IN TOTALITY AS IT A FIXED EXPENSE 2008 (513000-500000)/500000 2009 (531576-513000)/513000 3% 4% As the growth rate is rising constantly by 1% every year thus we should predict results using following rates: 2010 5% 2011 6% 2012 7% 2013 8% 2014 9% 2015 10% 2016 11% 2017 12% 2018 13% 2019 14% 8 CALCULATION OF GROWTH RATE IN DEPRECIATION NOTE: THIS COST IN NEVER ANALYSED ON PER UNIT BASIS THUS WE WILL CHECK IN TOTALITY AS IT A FIXED EXPENSE 2008 (502200-500000)/500000 2009 (502686-502200)/502200 0.44% 0.10% AS HERE THERE IS NO TREND IN GROWTH RATE IF WE CHECK IT ON TOTALITY BASIS THUS WE SHOULD NOW CHECK IT ON PER UNIT BASIS 2008 (0.93-1)/1 2009 (0.87-0.93)/0.93 -7% -6% As the growth rate is falling constantly by 1% every year that too negative thus we should predict results using following rates: 2010 -7% 2011 -8% 2012 -9% 2013 -10% 2014 -11% 2015 -12% 2016 -13% 2017 -14% 2018 -15% 2019 -16% 9 CALCULATION OF GROWTH RATE IN CONSULTANTS EXPENSES NOTE: THIS COST IN NEVER ANALYSED ON PER UNIT BASIS THUS WE WILL CHECK IN TOTALITY AS IT A FIXED EXPENSE 2008 (43200-35000)/35000 2009 (40446-43200)/43200 23% -6% AS HERE THERE IS NO TREND IN GROWTH RATE IF WE CHECK IT ON TOTALITY BASIS THUS WE SHOULD NOW CHECK IT ON PER UNIT BASIS 2008 (0..08-0..07)/0.07 2009 (0.07-0.08)/0.08 14% -13% AS HERE THERE IS NO TREND IN GROWTH RATE IF WE CHECK IT ON PER UNIT BASIS ALSO WE SHOULD USE AVERAGE METHOD AVERAGE OF LAST 3 YEARS (35000+43200+40446)/3 $39,548.67 THUS WE SHOULD TAKE THIS AS EXPENSE IN PREDICTIONS 9 CALCULATION OF GROWTH RATE IN BAD DEBTS THE BEST WAY TO ANALYSE BAD DEBTS IS AS PERCENTAGE OF REVENUE 2007 15000/26500000 2008 10800/29673000 2009 17334/32622588 0.06% 0.04% 0.05% AVERAGE RATE OF BAD DEBT 0.05% Cash flow statement and NPV Cash flow statement Particulars Cash inflows Revenue Total cash inflows 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $34,653,603.50 $34,653,603.50 $36,831,017.31 $36,831,017.31 $38,411,615.34 $38,411,615.34 $39,603,004.46 $39,603,004.46 $40,437,030.96 $40,437,030.96 $40,885,984.26 $40,885,984.26 $40,932,796.76 $40,932,796.76 $40,896,930.91 $40,896,930.91 $40,861,782.37 $40,861,782.37 $40,827,336.81 $40,827,336.81 Cash outflows Capital expenditure $50,000.00 $50,000.00 $50,000.00 $50,000.00 Leasehold improvements $10,000.00 $10,000.00 $10,000.00 $10,000.00 creditors for last month's purchases $13,293,956.96 $14,387,794.24 $15,423,537.84 $16,375,087.56 ADMINISTRATION $5,463,330.12 $5,627,230.02 $5,796,046.92 $5,969,928.33 UTILITIES $224,475.30 $237,943.82 $254,599.89 $274,967.88 RENT $558,154.80 $586,062.54 $615,365.67 $646,133.95 CONSULTANTS $39,548.67 $39,548.67 $39,548.67 $39,548.67 Tax $6,006,329.69 $6,324,075.56 $6,417,329.64 $6,412,257.56 Total cash outflows $25,645,795.53 $27,262,654.84 $28,606,428.62 $29,777,923.95 $50,000.00 $10,000.00 $17,216,795.90 $6,149,026.18 $299,714.98 $678,440.65 $39,548.67 $6,303,924.88 $30,747,451.27 $50,000.00 $10,000.00 $17,924,561.24 $6,333,496.97 $329,686.48 $712,362.68 $39,548.67 $6,090,395.84 $31,490,051.88 $50,000.00 $10,000.00 $18,476,931.32 $6,523,501.88 $365,952.00 $747,980.81 $39,548.67 $5,772,901.00 $31,986,815.67 $50,000.00 $10,000.00 $19,031,239.26 $6,719,206.93 $409,866.24 $785,379.85 $39,548.67 $5,442,060.91 $32,487,301.87 $50,000.00 $10,000.00 $19,602,176.44 $6,920,783.14 $463,148.85 $824,648.85 $39,548.67 $5,096,697.98 $33,007,003.92 $50,000.00 $10,000.00 $20,190,241.73 $7,128,406.63 $527,989.69 $865,881.29 $39,548.67 $4,735,500.03 $33,547,568.03 $9,689,579.69 $9,395,932.39 $8,945,981.08 $8,409,629.04 $7,854,778.45 $7,279,768.78 Surplus/(deficit) $9,007,807.96 $9,568,362.46 $9,805,186.71 $9,825,080.51 Working notes 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total Revenue 26500000 29673000 32622588 35200495.8576 37275295.88422 38729052.58076 39853318.82105 40612794.90248 40981715.97751 40945253.241 40909520 40874500.95 40840182.51 Bad debts 15000 10800 17334 17146.80226166 18157.47512073 18865.62646931 19413.27701917 19783.23164263 19962.93981349 19945.17815083 19927.77 19910.71342 19893.99629 Net revenue 26485000 29662200 32605254 35183349.05534 37257138.4091 38710186.95429 39833905.54403 40593011.67083 40961753.0377 40925308.06285 40889592 40854590.23 40820288.51 DSO is 75 days. This means that the sales for 75 days of the preivious year will be realized in the current year. Similarly, sales of 75 days of the current year will be collected in the next year. 75 days worth of sales 5442123.2876712 6094972.60274 6699709.726027 7229455.285344 7655576.385432 7954148.004307 8185049.08439 8341029.795377 8416798.56939 8409309.875929 8401971 8394778.815 8387730.517 Collection on account of sales 29009350.68493 32000516.87671 34653603.49602 36831017.30901 38411615.33542 39603004.46395 40437030.95985 40885984.26369 40932796.75631 40896931 40861782.37 40827336.81 COGS 10000000 11124000 12260916 13386468.0888 14477465.23804 15508260.76299 16452713.84345 17285221.16393 17981815.57684 18521270.04414 19076908 19649215.39 20238691.85 Account payable is 30 days. This means that the creditors are paid 30 days after the purchase is made. This means 30 days worth of cost of goods sold of each year will be paid in the next year 30 days worth of COGS 821917.80821918 914301.369863 1007746.520548 1100257.651134 1189928.649702 1274651.56956 1352277.850147 1420703.109364 1477957.444671 1522296.168012 1567965 1615004 1663454.125 Payment for COGS 11031616.43836 12167470.84932 13293956.95821 14387794.23947 15423537.84313 16375087.56287 17216795.90471 17924561.24153 18476931.3208 19031239 19602176.44 20190241.73 Tax calculation EBIT Tax @ 40% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 15015824.221072 15810188.8912 16043324.09529 16030643.91221 15759812.20062 15225989.59635 14432252.49666 13605152.28691 12741744.95694 11838750.06288 6006329.6884287 6324075.556478 6417329.638114 6412257.564886 6303924.880248 6090395.838541 5772900.998664 5442060.914765 5096697.982778 4735500.025153 Net present value Total cash inflows Present value factor @ 15% Present value Total present value 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $34,653,603.50 $36,831,017.31 $38,411,615.34 $39,603,004.46 $40,437,030.96 $40,885,984.26 $40,932,796.76 $40,896,930.91 $40,861,782.37 $40,827,336.81 0.8695652174 0.7561436673 0.6575162324 0.5717532456 0.4971767353 0.4323275959 0.3759370399 0.3269017738 0.284262412 0.2471847061 $30,133,568.26 $27,849,540.50 $25,256,260.60 $22,643,146.34 $20,104,351.04 $17,676,139.28 $15,388,154.45 $13,369,279.26 $11,615,468.82 $10,091,893.25 $194,127,801.79 Total cash outflows Present value factor @ 15% Present value Total present value $25,645,795.53 $27,262,654.84 $28,606,428.62 $29,777,923.95 $30,747,451.27 $31,490,051.88 $31,986,815.67 $32,487,301.87 $33,007,003.92 $33,547,568.03 0.8695652174 0.7561436673 0.6575162324 0.5717532456 0.4971767353 0.4323275959 0.3759370399 0.3269017738 0.284262412 0.2471847061 $22,300,691.77 $20,614,483.81 $18,809,191.17 $17,025,624.67 $15,286,917.44 $13,614,018.42 $12,025,028.80 $10,620,156.61 $9,382,650.55 $8,292,445.75 $147,971,208.99 Net Present Value = Present value of cash inflows-Present value of cash outflows Net Present Value = $194127801.79-$147971208.99 Net Present Value $46,156,592.80 Cash flow statement and NPV Cash flow statement Particulars Cash inflows Revenue Total cash inflows 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $34,653,603.50 $34,653,603.50 $36,831,017.31 $36,831,017.31 $38,411,615.34 $38,411,615.34 $39,603,004.46 $39,603,004.46 $40,437,030.96 $40,437,030.96 $40,885,984.26 $40,885,984.26 $40,932,796.76 $40,932,796.76 $40,896,930.91 $40,896,930.91 $40,861,782.37 $40,861,782.37 $40,827,336.81 $40,827,336.81 Cash outflows Capital expenditure $50,000.00 $50,000.00 $50,000.00 $50,000.00 Leasehold improvements $10,000.00 $10,000.00 $10,000.00 $10,000.00 creditors for last month's purchases $13,293,956.96 $14,387,794.24 $15,423,537.84 $16,375,087.56 ADMINISTRATION $5,463,330.12 $5,627,230.02 $5,796,046.92 $5,969,928.33 UTILITIES $224,475.30 $237,943.82 $254,599.89 $274,967.88 RENT $558,154.80 $586,062.54 $615,365.67 $646,133.95 CONSULTANTS $39,548.67 $39,548.67 $39,548.67 $39,548.67 Tax $6,006,329.69 $6,324,075.56 $6,417,329.64 $6,412,257.56 Total cash outflows $25,645,795.53 $27,262,654.84 $28,606,428.62 $29,777,923.95 $50,000.00 $10,000.00 $17,216,795.90 $6,149,026.18 $299,714.98 $678,440.65 $39,548.67 $6,303,924.88 $30,747,451.27 $50,000.00 $10,000.00 $17,924,561.24 $6,333,496.97 $329,686.48 $712,362.68 $39,548.67 $6,090,395.84 $31,490,051.88 $50,000.00 $10,000.00 $18,476,931.32 $6,523,501.88 $365,952.00 $747,980.81 $39,548.67 $5,772,901.00 $31,986,815.67 $50,000.00 $10,000.00 $19,031,239.26 $6,719,206.93 $409,866.24 $785,379.85 $39,548.67 $5,442,060.91 $32,487,301.87 $50,000.00 $10,000.00 $19,602,176.44 $6,920,783.14 $463,148.85 $824,648.85 $39,548.67 $5,096,697.98 $33,007,003.92 $50,000.00 $10,000.00 $20,190,241.73 $7,128,406.63 $527,989.69 $865,881.29 $39,548.67 $4,735,500.03 $33,547,568.03 $9,689,579.69 $9,395,932.39 $8,945,981.08 $8,409,629.04 $7,854,778.45 $7,279,768.78 Surplus/(deficit) $9,007,807.96 $9,568,362.46 $9,805,186.71 $9,825,080.51 Working notes 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total Revenue 26500000 29673000 32622588 35200495.8576 37275295.88422 38729052.58076 39853318.82105 40612794.90248 40981715.97751 40945253.241 40909520 40874500.95 40840182.51 Bad debts 15000 10800 17334 17146.80226166 18157.47512073 18865.62646931 19413.27701917 19783.23164263 19962.93981349 19945.17815083 19927.77 19910.71342 19893.99629 Net revenue 26485000 29662200 32605254 35183349.05534 37257138.4091 38710186.95429 39833905.54403 40593011.67083 40961753.0377 40925308.06285 40889592 40854590.23 40820288.51 DSO is 75 days. This means that the sales for 75 days of the preivious year will be realized in the current year. Similarly, sales of 75 days of the current year will be collected in the next year. 75 days worth of sales 5442123.2876712 6094972.60274 6699709.726027 7229455.285344 7655576.385432 7954148.004307 8185049.08439 8341029.795377 8416798.56939 8409309.875929 8401971 8394778.815 8387730.517 Collection on account of sales 29009350.68493 32000516.87671 34653603.49602 36831017.30901 38411615.33542 39603004.46395 40437030.95985 40885984.26369 40932796.75631 40896931 40861782.37 40827336.81 COGS 10000000 11124000 12260916 13386468.0888 14477465.23804 15508260.76299 16452713.84345 17285221.16393 17981815.57684 18521270.04414 19076908 19649215.39 20238691.85 Account payable is 30 days. This means that the creditors are paid 30 days after the purchase is made. This means 30 days worth of cost of goods sold of each year will be paid in the next year 30 days worth of COGS 821917.80821918 914301.369863 1007746.520548 1100257.651134 1189928.649702 1274651.56956 1352277.850147 1420703.109364 1477957.444671 1522296.168012 1567965 1615004 1663454.125 Payment for COGS 11031616.43836 12167470.84932 13293956.95821 14387794.23947 15423537.84313 16375087.56287 17216795.90471 17924561.24153 18476931.3208 19031239 19602176.44 20190241.73 Tax calculation EBIT Tax @ 40% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 15015824.221072 15810188.8912 16043324.09529 16030643.91221 15759812.20062 15225989.59635 14432252.49666 13605152.28691 12741744.95694 11838750.06288 6006329.6884287 6324075.556478 6417329.638114 6412257.564886 6303924.880248 6090395.838541 5772900.998664 5442060.914765 5096697.982778 4735500.025153 Net present value Total cash inflows Present value factor @ 15% Present value Total present value 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $34,653,603.50 $36,831,017.31 $38,411,615.34 $39,603,004.46 $40,437,030.96 $40,885,984.26 $40,932,796.76 $40,896,930.91 $40,861,782.37 $40,827,336.81 0.8695652174 0.7561436673 0.6575162324 0.5717532456 0.4971767353 0.4323275959 0.3759370399 0.3269017738 0.284262412 0.2471847061 $30,133,568.26 $27,849,540.50 $25,256,260.60 $22,643,146.34 $20,104,351.04 $17,676,139.28 $15,388,154.45 $13,369,279.26 $11,615,468.82 $10,091,893.25 $194,127,801.79 Total cash outflows Present value factor @ 15% Present value Total present value $25,645,795.53 $27,262,654.84 $28,606,428.62 $29,777,923.95 $30,747,451.27 $31,490,051.88 $31,986,815.67 $32,487,301.87 $33,007,003.92 $33,547,568.03 0.8695652174 0.7561436673 0.6575162324 0.5717532456 0.4971767353 0.4323275959 0.3759370399 0.3269017738 0.284262412 0.2471847061 $22,300,691.77 $20,614,483.81 $18,809,191.17 $17,025,624.67 $15,286,917.44 $13,614,018.42 $12,025,028.80 $10,620,156.61 $9,382,650.55 $8,292,445.75 $147,971,208.99 Net Present Value = Present value of cash inflows-Present value of cash outflows Net Present Value = $194127801.79-$147971208.99 Net Present Value $46,156,592.80
