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PV exercise Discount rate 10% 1 2 4 3 3096000 3003000 4680000 3640000 Net cash flows from operating activities PV of CF Total PV 5

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PV exercise Discount rate 10% 1 2 4 3 3096000 3003000 4680000 3640000 Net cash flows from operating activities PV of CF Total PV 5 4955000 Calculate the PV of each cash flow in this row Add the PV amounts to obtain the total PV PV Use the NPV formula to complete the same process in one step CAGR of cash flows Calculate the CAGR of cash flows from time 1 to time 4 Exercise 2 (completed in assignment 1) 3003000 0.00% Projected cash flow CAGR PV of CF Total PV Use the CAGR in exercise 1 to obtain forecast cash flows From exercise 1 Calculate the PV of each cash flow in this row Add the PV amounts to obtain the total PV Discount rate 8% 10% 12% Complete the Data Table sensitivity analysis Data Table 0 10.00% 13.34% 15.00% 20.00% CAGR

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