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    Net Present Value

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    Dreamer_Shopno
    The document contains cash flow tables and calculations for various financial scenarios including: - Monthly cash flows over 4 months with an initial investment - NPV calculations for projects with initial investments and annual cash flows over 10 years - Calculations of required initial investments, values of cash flows with initial flows, and cash flows including terminal values - Cash flows including multiple capital outflows, non-annual cash flows, and equivalent payments calculated using NPV The tables demonstrate various methods for calculating net present value and future value of cash flows under different conditions.

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    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd

    Net Present Value

    Uploaded by

    Dreamer_Shopno
    141 views10 pages
    The document contains cash flow tables and calculations for various financial scenarios including: - Monthly cash flows over 4 months with an initial investment - NPV calculations for projects with initial investments and annual cash flows over 10 years - Calculations of required initial investments, values of cash flows with initial flows, and cash flows including terminal values - Cash flows including multiple capital outflows, non-annual cash flows, and equivalent payments calculated using NPV The tables demonstrate various methods for calculating net present value and future value of cash flows under different conditions.

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    Excel Formulas

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    net present value

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    The document contains cash flow tables and calculations for various financial scenarios including: - Monthly cash flows over 4 months with an initial investment - NPV calculations for projects with initial investments and annual cash flows over 10 years - Calculations of required initial investments, values of cash flows with initial flows, and cash flows including terminal values - Cash flows including multiple capital outflows, non-annual cash flows, and equivalent payments calculated using NPV The tables demonstrate various methods for calculating net present value and future value of cash flows under different conditions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    141 views10 pages

    Net Present Value

    Uploaded by

    Dreamer_Shopno
    The document contains cash flow tables and calculations for various financial scenarios including: - Monthly cash flows over 4 months with an initial investment - NPV calculations for projects with initial investments and annual cash flows over 10 years - Calculations of required initial investments, values of cash flows with initial flows, and cash flows including terminal values - Cash flows including multiple capital outflows, non-annual cash flows, and equivalent payments calculated using NPV The tables demonstrate various methods for calculating net present value and future value of cash flows under different conditions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 10

    Cash Flow Calculations

    Month Cash Flows Cash Flows Cash Flows


    Initial Investment (20,000.00) (20,000.00) (20,000.00)
    June 4,000.00 4,000.00 4,000.00
    July 5,000.00 5,000.00 5,000.00
    August 10,000.00 10,000.00 10,000.00
    September 2,000.00 2,000.00 2,000.00
    ($2,408.54) ($2,601.22) ($2,601.22)
    -- Caution --
    NPV Example

    Discount Rate: 10%

    Time Cash Flow


    0 ($200,000.00)
    1 20,000.00
    2 22,500.00
    3 25,000.00
    4 27,500.00
    5 30,000.00
    6 32,500.00
    7 35,000.00
    8 37,500.00
    9 40,000.00
    10 42,500.00

    NPV = ($19,880.30)
    Calculating a Required Initial Investment

    Discount Rate: 10%

    Time Cash Flow


    0 $0.00
    1 20,000.00
    2 22,500.00
    3 25,000.00
    4 27,500.00
    5 30,000.00
    6 32,500.00
    7 35,000.00
    8 37,500.00
    9 40,000.00
    10 42,500.00

    NPV= $180,119.70
    Calculating Value of a Cash Flow with Initial Flow

    Rate: 10%

    Time Cash Flow


    0 $ 30,000.00
    1 30,000.00
    2 32,500.00
    3 32,500.00
    4 35,000.00
    5 35,000.00
    6 40,000.00
    7 40,000.00

    NPV= $ 197,292.96
    Cash Flows with Terminal Values

    Rate: 10%

    Time Income Flow Capital Flow Cash Flow


    0 $ 30,000.00 $ 30,000.00
    1 30,000.00 30,000.00
    2 32,500.00 32,500.00
    3 32,500.00 32,500.00
    4 35,000.00 35,000.00
    5 35,000.00 35,000.00
    6 40,000.00 40,000.00
    7 40,000.00 450,000.00 490,000.00

    NPV= $ 428,214.11
    Cash Flows with a Terminal Value

    Rate: 10%

    Time Income Flow Capital Flow Cash Flow


    0 $ 30,000.00 ($360,000.00) $ (330,000.00)
    1 30,000.00 30,000.00
    2 32,500.00 32,500.00
    3 32,500.00 32,500.00
    4 35,000.00 35,000.00
    5 35,000.00 35,000.00
    6 40,000.00 40,000.00
    7 40,000.00 450,000.00 490,000.00

    NPV= $ 68,214.11
    Multiple Outflows

    Rate: 10%

    Time Capital Flow Gross Margin Fixed Expenses Cash Flow


    0 $ (475,000.00) $ - $ (25,000.00) $ (500,000.00)
    1 - - (25,000.00) (25,000.00)
    2 - 20,000.00 (25,000.00) (5,000.00)
    3 - 40,000.00 (25,000.00) 15,000.00
    4 - 100,000.00 (25,000.00) 75,000.00
    5 (225,000.00) 175,000.00 (25,000.00) (75,000.00)
    6 - 200,000.00 (25,000.00) 175,000.00
    7 - 250,000.00 (25,000.00) 225,000.00
    8 - 275,000.00 (25,000.00) 250,000.00
    9 - 275,000.00 (25,000.00) 250,000.00
    10 - 275,000.00 (25,000.00) 250,000.00

    NPV= $ 22,347.71
    Non-Annual Cash Flows

    Effective Annual Interest Rate 7%


    Cash Flow Frequency 4
    Interest Rate Per Period 1.70585% Quarterly

    Period Revenue Flow Capital Flow Cash Flow


    0 $ 12,000.00 $ (700,000.00) $ (688,000.00)
    1 12,000.00 12,000.00
    2 12,000.00 12,000.00
    3 12,000.00 12,000.00
    4 12,000.00 12,000.00
    5 12,000.00 12,000.00
    6 12,000.00 12,000.00
    7 12,000.00 12,000.00
    8 12,000.00 12,000.00
    9 12,000.00 12,000.00
    10 12,000.00 12,000.00
    11 12,000.00 12,000.00
    12 900,000.00 900,000.00

    NPV: $ 166,099.72

    Annualizing the flow

    Period Revenue Flow Capital Flow Cash Flow


    0 $ (700,000.00) $ (700,000.00)
    1 48,000.00 48,000.00
    2 48,000.00 48,000.00
    3 48,000.00 900,000.00 948,000.00

    NPV: $ 160,635.26

    Error due to annualization $5,464.46


    3.29%
    Calculating FV using NPV Function

    Rate: 10%

    Time Cash Flow Interest Cumulative Balance


    0 $ 100,000.00 $ 100,000.00
    1 40,000.00 10,000.00 150,000.00
    2 30,000.00 15,000.00 195,000.00
    3 20,000.00 19,500.00 234,500.00
    4 50,000.00 23,450.00 307,950.00
    5 20,000.00 30,795.00 358,745.00
    6 50,000.00 35,874.50 444,619.50
    7 30,000.00 44,461.95 519,081.45

    NPV= $ 266,370.86

    Future Value $ 519,081.45 (Checks with final balance)


    Calculating Equivalent Payments with NPV

    Interest Rate: 7%
    Cash Flow Frequency: 12
    Interest Rate Per Period: 0.56541% Monthly
    Payment Type: 1

    Time Cash Flow


    0 $10,000.00
    1 $10,000.00
    2 $10,000.00
    3 $10,500.00
    4 $10,500.00
    5 $10,500.00
    6 $11,250.00
    7 $11,250.00
    8 $11,250.00
    9 $12,000.00
    10 $12,000.00
    11 $12,000.00
    12

    NPV= $127,100.53

    Equivalent Single Payment: $10,923.24

    Check using PV: $127,100.53

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