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    Worksheet Prepared by Dr. Gopala Ganesh: Net Present Value Analysis

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    Thomas Pemberton
    The document is a net present value analysis worksheet prepared by Dr. Gopala Ganesh for the Marco Polo Corporation. It provides input data on costs, sales projections, and other financial details to calculate the net present value and internal rate of return for a new equipment investment project with a total cost of $800,000 and a 10 year useful life. The analysis shows the project will generate a positive net present value of $1,188,344.41 and an internal rate of return of 30.21%, with a payback period of 5.12 years.

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    Worksheet Prepared by Dr. Gopala Ganesh: Net Present Value Analysis

    Uploaded by

    Thomas Pemberton
    18 views2 pages
    The document is a net present value analysis worksheet prepared by Dr. Gopala Ganesh for the Marco Polo Corporation. It provides input data on costs, sales projections, and other financial details to calculate the net present value and internal rate of return for a new equipment investment project with a total cost of $800,000 and a 10 year useful life. The analysis shows the project will generate a positive net present value of $1,188,344.41 and an internal rate of return of 30.21%, with a payback period of 5.12 years.

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    marketing and monet

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    MPCnpv

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    The document is a net present value analysis worksheet prepared by Dr. Gopala Ganesh for the Marco Polo Corporation. It provides input data on costs, sales projections, and other financial details to calculate the net present value and internal rate of return for a new equipment investment project with a total cost of $800,000 and a 10 year useful life. The analysis shows the project will generate a positive net present value of $1,188,344.41 and an internal rate of return of 30.21%, with a payback period of 5.12 years.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    18 views2 pages

    Worksheet Prepared by Dr. Gopala Ganesh: Net Present Value Analysis

    Uploaded by

    Thomas Pemberton
    The document is a net present value analysis worksheet prepared by Dr. Gopala Ganesh for the Marco Polo Corporation. It provides input data on costs, sales projections, and other financial details to calculate the net present value and internal rate of return for a new equipment investment project with a total cost of $800,000 and a 10 year useful life. The analysis shows the project will generate a positive net present value of $1,188,344.41 and an internal rate of return of 30.21%, with a payback period of 5.12 years.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
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    Spring 2013 Marco Polo Corporation

    Net Present Value Analysis


    worksheet prepared by Dr. Gopala Ganesh
    Input Section
    Cost of new equipment needed
    Useful life of equipment in years
    Salvage value
    Non-equipment intial investment
    Additional investment end of Year 3
    Additional investment end of Year 5
    Sales years 1 thru 3
    Sales years 4 thru 5
    Sales years 6 thru 10
    % Cost of goods sold
    Other recurring fixed exp per year

    $
    $
    $
    $
    $
    $
    $
    $

    Cost of capital
    Corporate tax rate

    700,000.00
    10
    40,000.00
    100,000.00
    300,000.00
    200,000.00
    1,000,000.00
    1,500,000.00
    2,000,000.00
    48.00%
    30.00%
    9.00%
    38.00%

    Output Section

    Years 1-3

    Total Gross Margin $ per year


    Total Net Contribution $ per year
    Depreciation $ per year
    Taxable Income per year
    Income After Tax per year

    $
    $
    $
    $

    520,000.00
    364,000.00
    66,000
    298,000.00
    184,760.00

    Net Cash Flow per year

    250,760.00

    Year

    Net Cash Flow

    Discount Rate
    1.0000
    0.9174
    0.8417
    0.7722
    0.7084
    0.6499
    0.5963
    0.5470
    0.5019
    0.4604
    0.4224

    0
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10

    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $

    (800,000.00)
    250,760.00
    250,760.00
    (49,240.00)
    363,600.00
    163,600.00
    476,440.00
    476,440.00
    476,440.00
    476,440.00
    516,440.00

    Total or Cumulative Cash Flow


    NPV of Cumulative Cash Flow
    Internal Rate of Return
    Payback years

    $
    $

    2,601,680.00
    1,188,344.41
    30.21%
    5.12

    Years 4-5
    $
    $

    Years 6-10
    $
    $

    $
    $

    780,000.00
    546,000.00
    66,000
    480,000.00
    297,600.00

    $
    $

    1,040,000.00
    728,000.00
    66,000
    662,000.00
    410,440.00

    363,600.00

    476,440.00

    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $

    DNCF

    CDNCF

    (800,000.00)
    230,055.05
    211,059.68
    (38,022.31)
    257,583.41
    106,328.77
    284,085.61
    260,629.00
    239,109.17
    219,366.21
    218,149.84

    $ (800,000.00)
    $ (569,944.95)
    $ (358,885.28)
    $ (396,907.59)
    $ (139,324.19)
    $
    (32,995.41)
    $
    251,090.19
    $
    511,719.19
    $
    750,828.36
    $
    970,194.57
    $ 1,188,344.41

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