Scribd Logo
Upload

Welcome to Scribd!

  • Infl Cid

    Uploaded by

    Rezwan Islam
    15 views4 pages
    This document summarizes the inputs for a discounted cash flow valuation of a project over 5 years. It provides details on costs of sales, growth rates, salvage value, discount rates, tax rates and annual depreciation. The net present value of the project's risky cash flows is $388,120.7 million in nominal terms and the project has a negative NPV when discounted at the nominal risky rate of 20%.

    Original Description:

    math

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    XLS, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document summarizes the inputs for a discounted cash flow valuation of a project over 5 years. It provides details on costs of sales, growth rates, salvage value, discount rates, tax rates and annual depreciation. The net present value of the project's risky cash flows is $388,120.7 million in nominal terms and the project has a negative NPV when discounted at the nominal risky rate of 20%.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    15 views4 pages

    Infl Cid

    Uploaded by

    Rezwan Islam
    This document summarizes the inputs for a discounted cash flow valuation of a project over 5 years. It provides details on costs of sales, growth rates, salvage value, discount rates, tax rates and annual depreciation. The net present value of the project's risky cash flows is $388,120.7 million in nominal terms and the project has a negative NPV when discounted at the nominal risky rate of 20%.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    of 4

    CO

    5500000
    Y-1
    Q
    9000
    Sales
    31050
    St. line
    5
    Cost
    2362.5
    s/unit
    3.45 in year 1 nominal terms
    Growth rate of sales
    5% in real terms for next 3 years
    and
    9.50% nominal rate in the following year.
    v. c. /unit
    0.25 in the first year in real term
    Growth rate of vc is
    7.10% nominal rate in the next two years
    and
    2.50% real rate in the rest of the years
    Salvage
    500000 in real term
    Nominal risky discount rate
    20%
    Real risk-less discount rate
    5.714%
    Nom risk-less discount rate
    11.00%
    Inflation rate
    5%
    Tax Rate
    34%
    Y-0
    Ann. Deprtn.
    1100000
    (S-C) x (1 - Tc)
    SV Nominal 638140.781
    DTS
    CO -5500000
    PVCO -5500000
    Nominal
    PCF risky
    Nominal
    PCF risk-free
    PV of Risky CF
    236517
    PV of RFreeCF 1382276
    PVCI
    1618793
    NPV
    (3881207)

    Y-2
    Y-3
    Y-4
    Y-5
    34232.6 37741.5 41610 45562.9
    2530.24 2709.88 2916.51 3138.9

    xt 3 years
    Nom rate
    ng year.
    Nominal v.c. =
    next two years
    Nom rate

    0.1025
    0.2625
    0.0762

    Y-1
    Y-2
    Y-3
    Y-4
    Y-5
    18933.8 20923.6 23120.8 25537.7 27999.85
    374000 374000 374000 374000
    374000
    421172.9
    18933.8 20923.6 23120.8 25537.7 449172.8
    374000 374000 374000 374000
    374000

    CO
    5500000
    Y-1
    Q
    9000
    Sales 29571.429
    St. line
    5
    Cost
    2250
    s/unit
    3.45 in year 1 nominal terms
    Growth rate of sales
    5% in real terms for next 3 years
    and
    9.50% nominal rate in the following year.
    v. c. /unit
    0.25 in the first year in real term
    Growth rate of vc is
    7.10% nominal rate in the next two years
    and
    2.50% real rate in the rest of the years
    Salvage
    500000 in real term
    Nominal risky discount rate
    20%
    Real risky discount rate
    0.14
    Real risk-less discount rate
    5.714%
    Nom risk-less discount rate
    11.00%
    Inflation rate
    5%
    Y-0
    Tax Rate
    34%
    (S-C) x (1 - Tc)
    Ann. Deprtn.
    1100000
    DTS
    CO -5500000
    PVCO -5500000
    Real PCF risky
    Nominal PCF risk-free
    PV of Risky CF
    236517
    PV of RFreeCF 1382276
    PVCI
    1618793
    NPV
    (3881207)

    Y-2
    Y-3
    31050 32602.5
    2295 2340.9
    Real
    xt 3 years
    ng year.
    RR

    next two years

    RR

    Y-4
    Y-5
    34232.6 35699.7
    2399.42 2459.41
    3.28571
    0.04
    0.02

    Y-1
    Y-2
    Y-3
    Y-4
    Y-5
    18032.1 18978.3 19972.7 21009.9 21938.62
    374000 374000 374000 374000
    374000
    330000
    18032.1 18978.3 19972.7 21009.9 351938.6
    374000 374000 374000 374000
    374000

    You might also like