Scribd Logo
Upload

Welcome to Scribd!

  • 6 views

    (Questions Answered As Given in The Sheet) : NPV Calculation

    Uploaded by

    Madhuri
    Q1: The net present value (NPV) of the turboprop aircraft is $2,369. Q2: The NPV of the piston engine aircraft is $5,071 if not expanded, but is -$70 if expanded. Q3: The NPV without the option to expand at the end of year 1 is -$957, while the value of the expansion option is $887.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    (Questions Answered As Given in The Sheet) : NPV Calculation

    Uploaded by

    Madhuri
    6 views2 pages
    Q1: The net present value (NPV) of the turboprop aircraft is $2,369. Q2: The NPV of the piston engine aircraft is $5,071 if not expanded, but is -$70 if expanded. Q3: The NPV without the option to expand at the end of year 1 is -$957, while the value of the expansion option is $887.

    Original Description:

    SA

    Original Title

    RM SouthernAirways Solution

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Q1: The net present value (NPV) of the turboprop aircraft is $2,369. Q2: The NPV of the piston engine aircraft is $5,071 if not expanded, but is -$70 if expanded. Q3: The NPV without the option to expand at the end of year 1 is -$957, while the value of the expansion option is $887.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    6 views2 pages

    (Questions Answered As Given in The Sheet) : NPV Calculation

    Uploaded by

    Madhuri
    Q1: The net present value (NPV) of the turboprop aircraft is $2,369. Q2: The NPV of the piston engine aircraft is $5,071 if not expanded, but is -$70 if expanded. Q3: The NPV without the option to expand at the end of year 1 is -$957, while the value of the expansion option is $887.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    NPV Calculation (Questions answered as given in the sheet)

    NPV of the
    Q1 turboprop 2369
    aircraft

    NPV of the Expand: NPV 6600


    piston
    engine Do not expand: NPV 5071
    Q2 -70
    aircraft

    NPV when
    there is no
    option to
    expand Value of option to
    Q3 -957 expand 887
    at the end
    of year 1

    Continuation 7857
    Q4 (Turboprop Aircraft)
    Abandonment 8000

    Continuation 2875
    Q5 (Piston Engine Aircraft)
    Abandonment 4400

    You might also like