MATH Project - Calculating the NPV of your Business Operation Your Business Operation

You are required to complete a Managerial Math Individual Work Based Project.

This project involves determining the NPV of your Business Operation.

You will need to provide Full details in your project of all Equations (can be written), Time Lines (can be written) and Meaningful Statements and SCAN your document as PDF (under 10 MB) and Upload your document into Moodle Dropbox. As well, you need to provide a Typed full 1-page executive report of the financial value of the Business Operation along with recommendations for improvements and suggestions.

Your Business Operation requires computing the net present values of values inflows and outflows of money and of the entire operation. You are asked to detail all of this money on timelines and value the funds at the beginning of the project.

Assume an interest rate of 5% c.m for the NPV calculation. The entire operation is over 1 year. Show FULL details at every time point where there is a money event occurring

In your portfolio, you have Outgoing funds and Incoming funds.

Outgoing funds:

1. Purchase of $100,000 bond
2. Real estate Rental expenses of $900 per month for 1 year
3. Equipment expenses of $400 per month
4. Business operation expenses of $700 per month
5. Loan payments on a loan of $200,000 at 2% c.q. paid quarterly to be repaid in full in 1 year

Incoming Funds (Revenues)

1. Redemption of a $100,000 bond redeemable at Face Value 1 year from time 0
2. Coupons on bond at 3% c.q
3. Salvage value of Equipment of $20,000 valued at end of 1 year
4. $200,000 loan from bank
5. Income Revenue from business operation at $8,000 each month for 1 year