please calculate the Net Present Value, the Profitability Index, and the Present Value Payback for your project using the 5.75% cost of money, an 8.75% cost of money and a 11.75% cost of money.?????At 5.75%??at 8.75?at 11.75%Net Present ValueProfitability IndexPV Payback
The Net Present Value is calculated below with 5.75% Cost of Capital: 78 79 Year 5 80 Total Acquisition Stage Cash Flow -1,205,000.00 81,035.46 -20,772.51 6,192.04 87,829.10 3,927.94 28,096.99 Total Operating Stage Cash Flow 1, 103,760.00 2,472,213.78 2,379,455.58 2,129,760.00 906,737.36 1, 103,667.05 1,15 82 Total Cash Flows -1,205,000.00 1,022,724.54 2,451,441.27 2,373,263.54 2,217,589.10 902,809.42 1,075,570.06 1,08 83 Present Value of Future Cash Flows at 5.75% $10,430,340.35 84 85 86 Net Present Value 87 The Net Present Value is calculated below with 8.75% Cost of Capital: 89 Year 0 3 5 6 Total Acquisition Stage Cash Flow -1,205,000.00 -81,035.46 20,772.51 6. 192.04 87,829.10 -3,927.94 28,096.99 Total Operating Stage Cash Flow 1,103,760.00 2,472,213.78 2,379,455.58 2,129,760.00 906,737.36 1,103,667.05 1,15 92 Total Cash Flows -1,205,000.00 1,022,724.54 2,451,441.27 2,373,263.54 2,217,589.10 902,809.42 1,075,570.06 1,0 93 Present Value of Future Cash Flows at 8.75% $9,334,958.38 94 95 Net Present Value 97 The Net Present Value is calculated below with 11.75% Cost of Capital: 98 99 Year 0 3 5 100 Total Acquisition Stage Cash Flow 1,205,000.00 -81,035.46 20,772.51 6,192.04 87,829.10 3,927.94 -28,096.99 101 Total Operating Stage Cash Flow 1,103,760.00 2,472,213.78 2,379,455.58 2,129,760.00 906,737.36 1,103,667.05 1,15 102 Total Cash Flows -1,205,000.00 1,022,724.54 2,451,441.27 2,373,263.54 2,217,589.10 902,809.42 1,075,570.06 1,0 103 Present Value of Future Cash Flows at 11.75% $8,409,468.24 104 105 106 107 108 109 110 Payback Period 111 Year 112 Cash Flows -1,205,000.00 1022724.54 2451441.27 2373263.54 2217589.1 102809.42 1075570.06 108 113 Accumulated cash flow -1,205,000.00 -182,275.46 2,269,165.81 4,642,429.35 6,860,018.45 7,762,827.87 8,838,397.93 9.92 114 115 Payback period 1.074354406 1.07 years 116 117 118 Present Value Payback Period 119 Year 0 120 Cash Flows -1,205,000.00 1,022,724.54 2,451,441.27 2,373,263.54 2,217,589.10 902,809.42 1,075,570.06 1,08 121 Present Value each year -$1,205,000.00 $946,967.17 $4,371,568.79 $6,116,130.32 $7,344,936.38 $3,604,656.23 $4,972,230.96 $5,67 122 Accumulated present value -1,205,000.00 -$258,032.83 $4,113,535.96 $10,229,666.28 $17,574,602.66 $21,179,258.89 $26,151,489.85 $31,82 123 124 Present value payback period 1.059025225 1.05 years 125 126 127
