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    manalika's Avatar
    manalika Posts: 1, Reputation: 1
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    #1

    Jan 21, 2011, 10:46 AM
    Solution to npv
    You are planning to build a new plant on31 December 2007.The initial cost will be $7,978,000.further costs during the first year will be $546,000 with positive cash flows expected in the second,third and fourth years of $2,500,000 ,$4,000,000, and $5,700,000 respectively.
    The fifth year onwarsd is expected to produce net cash inflows of $2,000,000, in perpetuity.
    Assume all cash flows at ends of years,except fro the initial cost.calculate the NPV of this project,assuming a cost of capital of 18%.
    arunavcd's Avatar
    arunavcd Posts: 89, Reputation: 3
    Junior Member
    		  
    #2

    Jan 21, 2011, 11:29 AM
    NPV Calculation
    Hope the attachment helps.

    If you have further query, please do not hesitate to contact me.
    Attached Files
  1. File Type: xls NPV answer for Help Desk.xls (20.0 KB, 133 views)
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