Cash Flow table
Year | Investment | Annual income | Annual maint. | salvage value | software upgrade | income | Net Cash Flow |
0 | -10000 | -10000 | |||||
1 | 2000 | 0 | 750 | 2750 | |||
2 | 2000 | -400 | 1600 | ||||
3 | 2000 | -400 | 1600 | ||||
4 | 2000 | -400 | 1600 | ||||
5 | 2000 | -400 | 1600 | ||||
6 | 2000 | -400 | 1600 | ||||
7 | 2000 | -400 | 1600 | ||||
8 | 2000 | -400 | -2500 | -900 | |||
9 | 2000 | -400 | 1600 | ||||
10 | 2000 | -400 | 1500 | 3100 |
CFD
We will use NPV function and FV function in Excel to find value of F12
Year | Investment | Annual income | Annual maint. | salvage value | software upgrade | income | Net Cash Flow |
0 | -10000 | -10000 | |||||
1 | 2000 | 0 | 750 | 2750 | |||
2 | 2000 | -400 | 1600 | ||||
3 | 2000 | -400 | 1600 | ||||
4 | 2000 | -400 | 1600 | ||||
5 | 2000 | -400 | 1600 | ||||
6 | 2000 | -400 | 1600 | ||||
7 | 2000 | -400 | 1600 | ||||
8 | 2000 | -400 | -2500 | -900 | |||
9 | 2000 | -400 | 1600 | ||||
10 | 2000 | -400 | 1500 | 3100 | |||
F12 | 3,648.55 |
Showing formula in excel
Year | Investment | Annual income | Annual maint. | salvage value | software upgrade | income | Net Cash Flow |
0 | -10000 | =E2+F2+G2+H2+I2+J2 | |||||
1 | 2000 | 0 | 750 | =E3+F3+G3+H3+I3+J3 | |||
2 | 2000 | -400 | =E4+F4+G4+H4+I4+J4 | ||||
3 | 2000 | -400 | =E5+F5+G5+H5+I5+J5 | ||||
4 | 2000 | -400 | =E6+F6+G6+H6+I6+J6 | ||||
5 | 2000 | -400 | =E7+F7+G7+H7+I7+J7 | ||||
6 | 2000 | -400 | =E8+F8+G8+H8+I8+J8 | ||||
7 | 2000 | -400 | =E9+F9+G9+H9+I9+J9 | ||||
8 | 2000 | -400 | -2500 | =E10+F10+G10+H10+I10+J10 | |||
9 | 2000 | -400 | =E11+F11+G11+H11+I11+J11 | ||||
10 | 2000 | -400 | 1500 | =E12+F12+G12+H12+I12+J12 | |||
F12 | =FV(7%,12,,-(NPV(7%,K3:K12)+K2)) |
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