PV of perpetual CF = Perpetual CF/(interest rate) |
PV of perpetual CF = 50000/(0.063) |
PV of perpetual CF = 793650.79 |
Project | ||
Discount rate | 0.063 | |
Year | 0 | 1 |
Cash flow stream | -250000 | 543650.8 |
Discounting factor | 1 | 1.063 |
Discounted cash flows project | -250000 | 511430.7 |
NPV = Sum of discounted cash flows | ||
NPV Project = | 261430.66 | |
Where | ||
Discounting factor = | (1 + discount rate)^(Corresponding period in years) | |
Discounted Cashflow= | Cash flow stream/discounting factor | |
Please ask remaining parts seperately
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