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    Book 1

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    Nimmy Mathew
    The document contains three examples of net present value calculations for potential investments with different cash inflows over multiple years. The first investment has cash inflows of $20,000, $15,000, $25,000 and $10,000 over 4 years, resulting in a positive NPV of $6,192 and a profitability index of 1.124. The second investment has higher cash inflows over 5 years, resulting in a positive NPV and profitability index over 1. The third investment has cash inflows over 5 years as well, with a total present value higher than the $80,000 investment.

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    Book 1

    Uploaded by

    Nimmy Mathew
    9 views3 pages
    The document contains three examples of net present value calculations for potential investments with different cash inflows over multiple years. The first investment has cash inflows of $20,000, $15,000, $25,000 and $10,000 over 4 years, resulting in a positive NPV of $6,192 and a profitability index of 1.124. The second investment has higher cash inflows over 5 years, resulting in a positive NPV and profitability index over 1. The third investment has cash inflows over 5 years as well, with a total present value higher than the $80,000 investment.

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    Book1.xlsx

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    The document contains three examples of net present value calculations for potential investments with different cash inflows over multiple years. The first investment has cash inflows of $20,000, $15,000, $25,000 and $10,000 over 4 years, resulting in a positive NPV of $6,192 and a profitability index of 1.124. The second investment has higher cash inflows over 5 years, resulting in a positive NPV and profitability index over 1. The third investment has cash inflows over 5 years as well, with a total present value higher than the $80,000 investment.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    9 views3 pages

    Book 1

    Uploaded by

    Nimmy Mathew
    The document contains three examples of net present value calculations for potential investments with different cash inflows over multiple years. The first investment has cash inflows of $20,000, $15,000, $25,000 and $10,000 over 4 years, resulting in a positive NPV of $6,192 and a profitability index of 1.124. The second investment has higher cash inflows over 5 years, resulting in a positive NPV and profitability index over 1. The third investment has cash inflows over 5 years as well, with a total present value higher than the $80,000 investment.

    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 3

    Years Cash Inflow P.V Factor 10% Total P.

    V of cash Inflow Cummulative Cash flow


    1 20000 0.909 18182 18182
    2 15000 0.826 12397 30579
    3 25000 0.751 18783 49361
    4 10000 0.683 6830 56192
    Total Present Value 56192

    Investment 50000

    NPV 6192

    Profitability Index 1.124


    3.09
    0.09

    Years Cash Inflow P.V Factor 10% Total P.V of cash Inflow Cummulative Cash flow
    1 24000 0.909 21818 21818
    2 23000 0.826 19008 40826
    3 40000 0.751 30053 70879
    4 32000 0.683 21856 92735
    5 16000 0.621 9935 102670
    Total Present Value 102670

    Investment 80000 2
    Payback Period
    Net Present Value
    Profitablity Index
    Years Cash Inflow P.V Factor 10% Total P.V of cash Inflow
    1 8000 0.909 7273
    2 24000 0.826 19835
    3 32000 0.751 24042
    4 48000 0.683 32785
    5 32000 0.621 19869
    Total Present Value 103804

    Investment 80000
    Payback Period
    Net Present Value
    Profitablity Index
    Cummulative Cash flow
    7273
    27107
    51150
    83934
    103804

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