Question
Year 0 1 2 3 4 5 Pay for Equipment $(2,300,000.00) $569,595.50 Add'l NOWC $(250,000.00) $(2,500.00) $(2,525.00) $(2,550.25) -2575.7525 $260,151.00 Units Sold 25,000.00 $25,000.00 $25,000.00
Year 0 1 2 3 4 5 Pay for Equipment $(2,300,000.00) $569,595.50 Add'l NOWC $(250,000.00) $(2,500.00) $(2,525.00) $(2,550.25) -2575.7525 $260,151.00 Units Sold 25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 Price $100.00 $101.00 $102.01 $103.03 $104.06 Total Revenue $2,500,000.00 $2,525,000.00 $2,550,250.00 $2,575,752.50 $2,601,510.03 Variable Cost $1,500,000.00 $1,500,000.00 $1,500,000.00 $1,500,000.00 $1,500,000.00 Fixed Cost $500,000.00 $530,000.00 $561,800.00 $595,508.00 $631,238.48 Depreciation Expense $328,670.00 $563,270.00 $402,270.00 $287,270.00 $205,390.00 Operating Income $171,330.00 $(68,270.00) $86,180.00 $192,974.50 $264,881.55 Tax on Ope Income $59,965.50 $(23,894.50) $30,163.00 $67,541.08 $92,708.54 NOPAT $111,364.50 $(44,375.50) $56,017.00 $125,433.43 $172,173.00 Add: Depreciation Ex $440,034.50 $518,894.50 $458,287.00 $412,703.43 $377,563.00 Total Annual Cash Flow $437,534.50 $516,369.50 $455,736.75 $410,127.67 $637,714.01 Net Present Value
Please show me how to calculate the Net Present Value. Thanks!
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