Homework Answers
Net Present Value = $5,981.59
|
Year |
Cash flows = CF |
Working capital adjustment = WC |
Net cash flow = NCF |
Discount factor = Df = 1/(1+Rate)^Year |
Present Values |
|
0 |
-$53,000.00 |
-$4,000.00 |
-$57,000.00 |
1.00000 |
-$57,000.00 |
|
Y |
CF |
WC |
NCF = CF + WC |
Df = 1/(1+13%)^Y |
=Df x NCF |
|
1 |
$25,500.00 |
$25,500.00 |
0.88496 |
$22,566.37 |
|
|
2 |
$25,500.00 |
$25,500.00 |
0.78315 |
$19,970.24 |
|
|
3 |
$25,500.00 |
$4,000.00 |
$29,500.00 |
0.69305 |
$20,444.98 |
|
Total = NPV = PW= |
$5,981.59 |
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