A sport team is trying to fund a new training facility project. The project is projected...
A sport team is trying to fund a new training facility project. The project is projected to have an invoice price of $65,000,000, ATP of $2,000,000, DTP of $1,500,000, and EQP of $15,000,000. They are projecting future cash flow of $17,000,000 a year for the next five years, with a discount rate of 8%. What is the Net Present Value of this project?
Homework Answers
| total cash outflow | ||||||
| Invoice price of project | -65000000 | |||||
| ATP | -2000000 | |||||
| DTP | -1500000 | |||||
| EQP | -15000000 | |||||
| total cash outflow | -83500000 | |||||
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| total cash outflow | -83500000 | |||||
| future cash inflow | 17000000 | 17000000 | 17000000 | 17000000 | 17000000 | |
| cash flow | -83500000 | 17000000 | 17000000 | 17000000 | 17000000 | 17000000 |
| Present value of cash flow = cash flow/(1+r)^n r =8% | -83500000 | 15740741 | 14574760 | 13495148 | 12495507 | 11569914 |
| Net present value = sum of present value of cash flow | -15623929 |
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A sport team is trying to fund a new training facility project.
The project is projected...
A sport team is trying to fund a new training facility project. The project is projected...
A sport team is trying to fund a new training facility project. The project is projected to have an invoice price of $65,000,000, ATP of $2,000,000, DTP of $1,500,000, and EQP of $15,000,000. They are projecting future cash flow of $17,000,000 a year for the next five years, with a discount rate of 8%. What is the Net Present Value of this project?
A sport team is trying to fund a new training facility project. The project is projected...
A sport team is trying to fund a new training facility project. The project is projected to have an invoice price of $65,000,000, ATP of $2,000,000, DTP of $1,500,000, and EQP of $15,000,000. They are projecting future cash flow of $17,000,000 a year for the next five years, with a discount rate of 8%. What is the Net Present Value of this project?
A sport team is trying to fund a new training facility project. The project is projected...
A sport team is trying to fund a new training facility project. The project is projected to have an invoice price of $65,000,000, ATP of $2,000,000, DTP of $1,500,000, and EQP of $15,000,000. They are projecting future cash flow of $17,000,000 a year for the next five years, with a discount rate of 8%. What is the Net Present Value of this project?
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