Question
Known Variables: Pessimistic Expected Optimistic Life of Project 12.00 Investment $4,680,000.00 $4,620,000.00 $4,560,000.00 Tax Rate: 0.40 Sales $15,000,000.00 $17,000,000.00 $19,000,000.00 Discount Rate 0.08 Var Costs
| Known Variables: | Pessimistic | Expected | Optimistic | ||
| Life of Project | 12.00 | Investment | $4,680,000.00 | $4,620,000.00 | $4,560,000.00 |
| Tax Rate: | 0.40 | Sales | $15,000,000.00 | $17,000,000.00 | $19,000,000.00 |
| Discount Rate | 0.08 | Var Costs as % Sales | 0.75 | 0.74 | 0.72 |
| Multiple: | 1.08 | Fixed Costs | $2,000,000.00 | $1,900,000.00 | $1,800,000.00 |
| Sensitivity on investment Amount" | |||||
| Sales | $17,000,000.00 | $17,000,000.00 | $17,000,000.00 | ||
| Var Costs | $12,580,000.00 | $12,580,000.00 | $12,580,000.00 | ||
| Fixed Costs | $1,900,000.00 | $1,900,000.00 | $1,900,000.00 | ||
| Depreciation | $390,000.00 | $385,000.00 | $380,000.00 | ||
| Pretax Profit | $2,130,000.00 | $2,135,000.00 | $2,140,000.00 | ||
| Taxes | $852,000.00 | $854,000.00 | $856,000.00 | ||
| Net Income | $1,278,000.00 | $1,281,000.00 | $1,284,000.00 | ||
| Cash Flow- Ops | $1,668,000.00 | $1,666,000.00 | $1,664,000.00 | ||
| PV of Cash Flow | |||||
| Less: Invest | $4,680,000.00 | $4,620,000.00 | $4,560,000.00 | ||
| NPV | -$4,680,000.00 | -$4,620,000.00 | -$4,560,000.00 |
Need assistance (formula or appropriate step-by-step instructions for calculating PV of Cash Flow figures on above table. This table os set-up in Excel to calculate NPV as PV Of Cash Flow less Invest....just stumped on how to calculate that value.
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Handbook Of Environmental And Sustainable Finance
Authors: Vikash Ramiah, Greg N. Gregoriou
1st Edition
012803615X, 978-0128036150
