Question
Review Figure 3 that shows the cash flows estimated before and after Katrina. Calculate the NPV of cash flows for each stream of cash before
Review Figure 3 that shows the cash flows estimated before and after Katrina. Calculate the NPV of cash flows for each stream of cash before and after Katrina using a discount rate of 9%. Remember that Figure 3 uses monthly cash flows and the discount rate is an annual rate. Use the following format (only part of Figure 3 is shown below).
I need the formula to solve this problem.
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| Old Sales Estimate | Old NPV of cash flow | New Sales Estimate | New NPV of cash flow |
| Date | for PowrFlo 500 (units) | sales price of $499.00 | for PowrFlo 500 (units) | sales price of $499.00 |
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| Oct-05 | 350 | Calculate this | 2700 | Calculate this |
Figure 3 (below)
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| Old Sales Estimate | Cash Flow with average | New Sales Estimate | Cash Flow with average |
| Date | for PowrFlo 500 (units) | sales price of $499.00 | for PowrFlo 500 (units) | sales price of $499.00 |
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| Oct-05 | 350 | $174,650.00 | 2700 | $1,347,300.00 |
| Nov-05 | 354 | $176,396.50 | 2754 | $1,374,246.00 |
| Dec-05 | 357 | $178,160.47 | 2809 | $1,401,730.92 |
| Jan-06 | 361 | $179,942.07 | 2865 | $1,429,765.54 |
| Feb-06 | 364 | $181,741.49 | 2923 | $1,458,360.85 |
| Mar-06 | 368 | $183,558.91 | 2981 | $1,487,528.07 |
| Apr-06 | 372 | $185,394.49 | 3041 | $1,517,278.63 |
| May-06 | 375 | $187,248.44 | 3101 | $1,547,624.20 |
| Jun-06 | 379 | $189,120.92 | 3163 | $1,578,576.68 |
| Jul-06 | 383 | $191,012.13 | 3227 | $1,610,148.22 |
| Aug-06 | 387 | $192,922.25 | 3291 | $1,642,351.18 |
| Sep-06 | 390 | $194,851.48 | 3357 | $1,675,198.21 |
| Oct-06 | 394 | $196,799.99 | 3424 | $1,708,702.17 |
| Nov-06 | 398 | $198,767.99 | 3493 | $1,742,876.21 |
| Dec-06 | 402 | $200,755.67 | 3563 | $1,777,733.74 |
| Jan-07 | 406 | $202,763.23 | 3634 | $1,813,288.41 |
| Feb-07 | 410 | $204,790.86 | 3707 | $1,849,554.18 |
| Mar-07 | 415 | $206,838.77 | 3781 | $1,886,545.26 |
| Apr-07 | 419 | $208,907.16 | 3856 | $1,924,276.17 |
| May-07 | 423 | $210,996.23 | 3933 | $1,962,761.69 |
| Jun-07 | 427 | $213,106.19 | 4012 | $2,002,016.93 |
| Jul-07 | 431 | $215,237.25 | 4092 | $2,042,057.27 |
| Aug-07 | 436 | $217,389.62 | 4174 | $2,082,898.41 |
| Sep-07 | 440 | $219,563.52 | 4258 | $2,124,556.38 |
| Oct-07 | 444 | $221,759.16 | 4343 | $2,167,047.51 |
| Nov-07 | 449 | $223,976.75 | 4430 | $2,210,388.46 |
| Dec-07 | 453 | $226,216.52 | 4518 | $2,254,596.23 |
| Jan-08 | 458 | $228,478.68 | 4609 | $2,299,688.15 |
| Feb-08 | 462 | $230,763.47 | 4701 | $2,345,681.91 |
| Mar-08 | 467 | $233,071.10 | 4795 | $2,392,595.55 |
| Apr-08 | 472 | $235,401.81 | 4891 | $2,440,447.46 |
| May-08 | 476 | $237,755.83 | 4988 | $2,489,256.41 |
| Jun-08 | 481 | $240,133.39 | 5088 | $2,539,041.54 |
| Jul-08 | 486 | $242,534.72 | 5190 | $2,589,822.37 |
| Aug-08 | 491 | $244,960.07 | 5294 | $2,641,618.82 |
| Sep-08 | 496 | $247,409.67 | 5400 | $2,694,451.19 |
| Oct-08 | 501 | $249,883.77 | 5508 | $2,748,340.22 |
| Nov-08 | 506 | $252,382.61 | 5618 | $2,803,307.02 |
| Dec-08 | 511 | $254,906.43 | 5730 | $2,859,373.16 |
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Financial Management For Nonprofit Human Service Organizations
Authors: Raymond Sanchez Mayers
2nd Edition
0398075131, 9780398075132
