Copy+of+CE - 3,200,000 9 60 3,200,000 2,200,000 1,000,000...

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same cash flow with 10 zeros Project Cash Flows ZEROS YEAR FWD FCF 0 (19,000,000) PV of ZEROS 1 50 2,200,000 2,095,238 2 50 2,200,000 1,995,465 3 52.5 2,450,000 2,116,402 4 52.5 2,450,000 2,015,621 5 54 2,600,000 2,037,168 6 54 2,600,000 1,940,160 7 53 2,500,000 1,776,703 8 53 2,500,000 1,692,098 9 50 2,200,000 1,418,140 10 50 2,200,000 1,350,609 NPV (562,395) 18,437,605 Total RF 5% same cach flow with 10 zeros and buy 10 fwd agreements Project Cash Flows ZEROS FWD REPLICATING YEAR FWD FCF Cash flow loss or gain cash flow 0 (19,000,000) 1 60 3,200,000 2,200,000 1,000,000 3,200,000 2 60 3,200,000 2,200,000 1,000,000 3,200,000 3 60 3,200,000 2,450,000 750,000 3,200,000 4 60 3,200,000 2,450,000 750,000 3,200,000 5 60 3,200,000 2,600,000 600,000 3,200,000 6 60 3,200,000 2,600,000 600,000 3,200,000 7 60 3,200,000 2,500,000 700,000 3,200,000 8 60 3,200,000 2,500,000 700,000
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Unformatted text preview: 3,200,000 9 60 3,200,000 2,200,000 1,000,000 3,200,000 10 60 3,200,000 2,200,000 1,000,000 3,200,000 NPV 5,709,552 RF 5% same cach flow with 10 zeros and buy 10 fwd agreements Project Cash Flows ZEROS FWD REPLICATING YEAR FWD FCF Cash flow loss or gain cash flow (19,000,000) 1 35 700,000 2,200,000 (1,500,000) 700,000 2 35 700,000 2,200,000 (1,500,000) 700,000 3 35 700,000 2,450,000 (1,750,000) 700,000 4 34 600,000 2,450,000 (1,850,000) 600,000 5 23 (500,000) 2,600,000 (3,100,000) (500,000) 6 66 3,800,000 2,600,000 1,200,000 3,800,000 7 72 4,400,000 2,500,000 1,900,000 4,400,000 8 50 2,200,000 2,500,000 (300,000) 2,200,000 9 80 5,200,000 2,200,000 3,000,000 5,200,000 10 125 9,700,000 2,200,000 7,500,000 9,700,000 NPV (233,280) RF 5%...
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