Ch 04 NPV Using General Discounting

Ch 04 NPV Using General Discounting - 4.1 NPV USING GENERAL...

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Nominal and Re (in thousands of $) Inputs Period 0 1 2 3 4 Nominal Discount Rate 6.40% 6.20% 6.00% 5.70% Net Present Value using a Time Line Period 0 1 2 3 4 Cash Flows ($54.39) $19.27 $27.33 $34.94 $41.76 Cumulative Discount Factor 0.00% 6.40% 13.00% 19.78% 26.60% Present Value of Each Cash Flow ($54.39) $18.11 $24.19 $29.17 $32.98 Net Present Value $74,410.00 4.1 NPV U SING G ENERAL D ISCOUNTING
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eal Rates 5 5.40% 5 $32.49 33.44% $24.35
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Nominal and Real Rates 4.1 NPV U SING G ENERAL D ISCOUNTING C HART 0 1 2 3 4 5 ($60.00) ($40.00) ($20.00) $0.00 $20.00 $40.00 $60.00 4.1 NPV Using General Discounting Cash Flows Present Value of Each Cash Flow Period This chart shows the present value and cash flows for this NPV problem for periods 0-5.
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Nominal and Real (in thousands of $) Inputs Period 0 1 2 3 4 Inflation Rate 3.40% 3.60% 3.90% 4.40% Real Discount Rate 7.80% 7.10% 6.50% 6.00% Outputs Period 0 1 2 3 4 Nominal Discount Rate
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Unformatted text preview: 11.47% 10.96% 10.65% 10.66% Net Present Value using a Time Line Period 1 2 3 4 Cash Flows ($328.47) $87.39 $134.97 $153.28 $174.99 Cumulative Discount Factor 0.00% 11.47% 23.68% 36.85% 51.45% Present Value of Each Cash Flow ($328.47) $78.40 $109.13 $112.00 $115.55 Net Present Value $138,310.00 4.2 NPV U SING G ENERAL D ISCOUNTING l Rates 5 4.70% 5.40% 5 10.35% 5 $86.41 67.13% $51.70 Nominal and Real Rates 4.2 NPV U SING G ENERAL D ISCOUNTING C HART 1 2 3 4 5 ($340.00) ($280.00) ($220.00) ($160.00) ($100.00) ($40.00) $20.00 $80.00 $140.00 $200.00 4.2 NPV Using General Discounting Cash Flows Present Value of Each Cash Flow Period This chart shows the present value and cash flows for this NPV problem for periods 0-5....
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