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Is this a good investment or not and why? Expected net present value A B Discounted CF 1 12 500 000,00 12 500 000,00 f
Is this a good investment or not and why?
Expected net present value A B Discounted CF 1 12 500 000,00 12 500 000,00 f 12 500 000,00 D E F Investment Time 0 - 18 000 000,00 - 18 000 000,00 - 18 000 000,00 - 18 000 000,00 - .6 18 000 000,00 - .6 18 000 000,00 - f 18 000 000,00 - f 18 000 000,00 Dis. CF 2 INPY 6 944 444,44 8 333 333,33 11 805 555,56 f 17 361 111,11 5 555 555,56 6 944 444,44 E 13 888 888,89 17 361 111,11 17 361 111,11 P1 1 444 444 2 833 333 6 305 556 -638 889 -12 444 444 -11 055 556 -4 111 111 -638 889 Total NPV*P1 8% 108 333 6% 177 083 9% 551 736 3% 39% -15 972 8% -933 333 6% 6 -663 333 9% -370 000 -19 167 -1 253 819 3% S. deviation B D E F G Outcome P1 1 444 444 2 833 333 6 305 556 -638 889 -12 444 444 -11 055 556 -4 111 111 -638 889 Exp. NPV 8% 6% 9% 3% 370 8% 8 6% % 9% 3% Deviation Deviation^2 Deviation squared times P1 -1 253 8191 2 698 264 7280 628 014 082 546 047 101 056 -1 253 8191 4 087 153 16 704 817 828 897 1 044 051 114 306 -1 253 819 7 559 375 57 144 150 390 625 5 000 113 159 180 -1 253 8191 614 931 378 139 588 156 9 453 489 704 9435 409 70 -1 253 819 -11 190 625 125 230 087 890 625 9 392 256 592 797 -1 253 819) -9 801 736 96 074 030 791 860 5 764 441 847 5121 -1 253 819 -2 857 292 8 164 115 668 403 734 770 410 156 -1 253 819 614 931 378 139 588 156 11 344 187 645 22 491 133 713 711 s. Deviation = 4 742 482 VarianceStep by Step Solution
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