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Copy of case17tnatemplate2 - Model Facts UVA-S-F-0813TN v...

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Model Facts Page 1 UVA-S-F-0813TN v. 2.1 Please note: Revised, December 9, 2001. Copyright (C) 1998 by the Trustees of the University of Virginia Darden School Foundation.
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Model Facts Page 2 .
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Exhibit TN1 Page 3 Exhibit TN1 The Investment Detective Project Free Cash Flows (in $ Thousands) Project Number 1 2 3 4 5 Initial Investment ($2,000) ($2,000) ($2,000) ($2,000) ($2,000) Year 1 $330 $1,666 $0 $160 280 2 330 334 0 200 280 3 330 165 0 350 280 4 330 0 395 280 5 330 0 432 280 6 330 0 440 280 7 330 0 442 280 8 1,000 0 444 280 9 0 446 280 10 0 448 280 11 0 450 280 12 0 451 280 13 0 451 280 14 0 452 280 15 10,000 (2,000) 280 Sum of Cash Flow Benefits $3,310 $2,165 $10,000 $3,561 $4,200 Excess of Cash Flow Over Initial Investment $1,310 $165 $8,000 $1,561 $2,200 * Asterisk indicates year in which payback is accomplished. Analysis Total Life of Investment 8 3 15 15 15 Payback (Years) 7 2 15 6 8 Average ROI (See Note 1) 20.7% 36.1% 33.3% 11.9% 14.0% Net present Value at: 10% $73 ($85) $394 $228 $130 11% (11) (107) 90 127 13 12% (90) (129) (173) 30 (93) 13% (164) (150) (401) (60) (191) 14% (234) (170) (599) (146) (280) 15% (300) (190) (771) (227) (363) 16% (362) (210) (921) (304) (439) Internal Rate of Return 10.9% 6.3% 11.3% 12.3% 11.1% PV Index (See Note 2) 1.037 0.957 1.197 0.706 1.065 Equivalent Annuity (Note 3) $13.7 ($34.4) $51.8 $30.0 $17.1 Equiv. Annuity (to infinity) $137.0 ($343.6) $517.9 $300.1 $170.5 Notes: 1. Average return on investment is calculated as the average of the cash flows over the life of the
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