1 & 2 | |||
Year | Cash Flow | PV @12% | Present value |
0 | -16000000 | 1 | $ -1,60,00,000.00 |
1 | 0 | 0.89285714 | $ - |
2 | 1500000 | 0.79719388 | $ 11,95,790.82 |
3 | 1500000 | 0.71178025 | $ 10,67,670.37 |
4 | 2500000 | 0.63551808 | $ 15,88,795.20 |
5 | 3000000 | 0.56742686 | $ 17,02,280.57 |
6 | 3000000 | 0.50663112 | $ 15,19,893.36 |
7 | 3000000 | 0.45234922 | $ 13,57,047.65 |
8 | 3000000 | 0.40388323 | $ 12,11,649.68 |
9 | 3000000 | 0.36061002 | $ 10,81,830.07 |
10 | 3000000 | 0.32197324 | $ 9,65,919.71 |
NPV | $ -43,09,123 | ||
IRR | 6.28% | ||
3) | |||
Break -even selling price = -11,690,877 | |||
Year | Cash Flow | ||
0 | $ -1,16,90,877.43 | ||
1 | 0 | ||
2 | 1500000 | ||
3 | 1500000 | ||
4 | 2500000 | ||
5 | 3000000 | ||
6 | 3000000 | ||
7 | 3000000 | ||
8 | 3000000 | ||
9 | 3000000 | ||
10 | 3000000 | ||
$ - |
1 & 2 | |||
Year | Cash Flow | PV @12% | Present value |
0 | -16000000 | =1/1.12^A13 | =B13*C13 |
1 | 0 | =1/1.12^A14 | =B14*C14 |
2 | 1500000 | =1/1.12^A15 | =B15*C15 |
3 | 1500000 | =1/1.12^A16 | =B16*C16 |
4 | 2500000 | =1/1.12^A17 | =B17*C17 |
5 | 3000000 | =1/1.12^A18 | =B18*C18 |
6 | 3000000 | =1/1.12^A19 | =B19*C19 |
7 | 3000000 | =1/1.12^A20 | =B20*C20 |
8 | 3000000 | =1/1.12^A21 | =B21*C21 |
9 | 3000000 | =1/1.12^A22 | =B22*C22 |
10 | 3000000 | =1/1.12^A23 | =B23*C23 |
NPV | =SUM(D13:D23) | ||
IRR | =IRR(B13:B23) | ||
3) | |||
Break -even selling price = -11,690,877 | |||
Year | Cash Flow | ||
0 | -11690877.4294121 | ||
1 | 0 | ||
2 | 1500000 | ||
3 | 1500000 | ||
4 | 2500000 | ||
5 | 3000000 | ||
6 | 3000000 | ||
7 | 3000000 | ||
8 | 3000000 | ||
9 | 3000000 | ||
10 | 3000000 | ||
=NPV(12%,B31:B40)+B30 |
MaxiCare Corporation, a not-for-profit organization, specializes in health care for senior citizens. Management is considering whether...
MaxiCare Corporation, a not-for-profit organization, specializes in health care for senior citizens. Management is considering whether to expand operations by opening a new chain of care centers in the inner city of large metropolitan areas. For a new facility, initial cash outlays for lease, renovations, net working capital, training, and other costs are expected to be about $24 million. The corporation expects the cash inflows of each new facility in its first year of operation to equal the initial investment...
MaxiCare Corporation, a not-for-profit organization, specializes in health care for senior citizens. Management is considering whether to expand operations by opening a new chain of care centers in the inner city of large metropolitan areas. For a new facility, initial cash outlays for lease, renovations, net working capital, training, and other costs are expected to be about $14 million. The corporation expects the cash inflows of each new facility in its first year of operation to equal the initial investment...
MaxiCare Corporation, a not-for-profit organization, specializes in health care for senior citizens. Management is considering whether to expand operations by opening a new chain of care centers in the inner city of large metropolitan areas. For a new facility, initial cash outlays for lease, renovations, net working capital, training, and other costs are expected to be about $17 million. The corporation expects the cash inflows of each new facility in its first year of operation to equal the initial investment...
MaxiCare Corporation, a not-for-profit organization, specializes in health care for senior citizens. Management is considering whether to expand operations by opening a new chain of care centers in the inner city of large metropolitan areas. For a new facility, initial cash outlays for lease, renovations, net working capital, training, and other costs are expected to be about $12 million. The corporation expects the cash inflows of each new facility in its first year of operation to equal the initial investment...
MaxiCare Corporation, a not-for-profit organization, specializes in health care for senior citizens. Management is considering whether to expand operations by opening a new chain of care centers in the inner city of large metropolitan areas. For a new facility, initial cash outlays for lease, renovations, net working capital, training, and other costs are expected to be about $16 million. The corporation expects the cash inflows of each new facility in its first year of operation to equal the initial investment...
MaxiCare Corporation, a not-for-profit organization, specializes in health care for senior citizens. Management is considering whether to expand operations by opening a new chain of care centers in the inner city of large metropolitan areas. For a new facility, initial cash outlays for lease, renovations, net working capital, training, and other costs are expected to be about $20 million. The corporation expects the cash inflows of each new facility in its first year of operation to equal the initial investment...
MaxiCare Corporation, a not-for-profit organization, specializes in health care for senior citizens. Management is considering whether to expand operations by opening a new chain of care centers in the inner city of large metropolitan areas. For a new facility, initial cash outlays for lease, renovations, net working capital, training, and other costs are expected to be about $26 million. The corporation expects the cash inflows of each new facility in its first year of operation to equal the initial investment...
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