Homework Answers
NPV = sum of present values of all cash flows
NPV is calculated using NPV function in Excel
The cash flows and NPV are calculated as below :
NPV = -133,611 EUR
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Next Activity A Company has been offered a five years contract to provide components to a...
A Company has been offered a five years contract to provide components to a car manufacturer....
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A Company has been offered a five years contract to provide components to a car manufacturer. If they accept that project, there will be an initial investment of 100,000 EUR, an extra expense of 100,000 EUR in year 3, and yearly revenues of 50,000 EUR. The company wishes to gain a 18% at least (use this as a discount rate). What is the NPV of this operation? (Write the answer with no decimals) Please upload an excel file with the...
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PLEASE SHOW YOUR WORK
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