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Assignment 2

The document contains examples of calculating net present value for multiple projects over several years using cash inflows, outflows and discount factors. It includes 16 problems showing year-by-year calculations and totals for projects.

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fatma mohamed
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4 views

Assignment 2

The document contains examples of calculating net present value for multiple projects over several years using cash inflows, outflows and discount factors. It includes 16 problems showing year-by-year calculations and totals for projects.

Uploaded by

fatma mohamed
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name:Maria Ehab Noshy

Problem 10

Years Cash flow Discount factor New inflows


0 (50000) 1 (50000)
1 30000 0.87 26100
2 30000 0.76 22800
3 40000 0.66 26400
4 25000 0.57 14250
5 15000 0.50 7500

Payback =2.1

Problem 11
Years Cash flow Discount Cash flow cum.cash
factor flow
0 (200000) 1 (200000) (200000)
1 50000 0.85 42500 (157500)
2 75000 0.72 54000 (103500)
3 125000 0.61 76250 27250
4 200000 0.52 104000 76750
5 250000 0.44 110000 186750

Payback = 3.26

Problem 12
Years Cash flow Discount Discounted Cum. cash
factor cash flow flow

0 (200000) 1 (200000) (200000)


1 50000 0.83 41500 (158500)
2 75000 0.69 51750 (106750)
3 125000 0.58 72500 (34250)
4 200000 0.48 96000 61750
5 250000 0.40 100000 161750

Payback =3.36 years

Problem 13
Years Cash flow Discount Discounted Cum.cash
factor Cash flow
Flow
0 (200000) 1 (200000) (200000)
1 50000 0.87 43500 (156500)
2 75000 0.76 57000 (99500)
3 125000 0.66 82500 (17000)
4 200000 0.57 114000 (97000)
5 250000 0.50 125000 (222000)

Problem 14

Project A
Years Inflow Outflow Net flow Discount NPV
factor
0 0 450000 (450000) 1 (450000)
1 150000 0 150000 0.85 127500
2 150000 0 150000 0.73 109500
3 150000 0 150000 0.62 93000
4 150000 0 150000 0.53 79500
5 150000 0 150000 0.46 69000
Total 28500

Years Inflow Outflow Net flow Discount NPV


factor

0 0 400000 (400000) 1 (400000)


1 0 0 0 0.85 0
2 50000 0 50000 0.73 36500
3 200000 0 200000 0.62 124000
4 300000 0 300000 0.53 159000
5 200000 0 200000 0.46 92000
Total 11500
Project B
Problem 15

Year Inflow Outflow Netflow Discount NPV


factor
0 0 125000 (125000) 1 (125000)
1 35000 0 35000 0.91 31818
2 35000 0 35000 0.83 29050
3 35000 0 35000 0.75 26250
4 35000 0 35000 0.68 23800
5 35000 0 35000 0.62 21700
Total 7493
Problem 16

Project Carlo

Year Inflow Outflow Net flow Discount NPV


factor

0 0 500000 (500000) 1 (500000)


1 50000 0 50000 0.81 40500
2 250000 0 250000 0.66 165000
3 350000 0 350000 0.54 189000
Total (105000)
Project George
Years Inflow Outflow Net flow Discount NPV
factor

0 0 250000 (250000) 1 (250000)


1 75000 0 75000 0.81 60750
2 75000 0 75000 0.66 49500
3 75000 0 75000 0.54 40500
4 75000 0 75000 0.44 22000
Total (77250)
Project Thomas

Years Inflow Outflow Netflow Discount NPV


factor

0 0 1000000 (1000000) 1 (1000000)


1 200000 0 200000 0.81 162000
2 200000 0 200000 0.66 132000
3 200000 0 200000 0.54 108000
4 200000 0 200000 0.44 88000
5 200000 0 200000 0.36 72000
6 200000 0 200000 0.24 58000
Total (380000)
Year Inflow Outflow Net flow Discount NPV
factor

1 0 75000 (75000) 1 (75000)


2 15000 0 15000 0.81 12150
3 25000 0 25000 0.66 16500
4 50000 0 50000 0.54 27000
5 50000 0 50000 0.44 22000
6 150000 0 150000 0.36 54000
Total 56650
Project Anna

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