Calculate the project volatility Copyright by Domingo Castelo Joaquin 2005

# Calculate the project volatility copyright by domingo

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Calculate the project volatility. Copyright by Domingo Castelo Joaquin 2005, [email protected]
Historical Cost of Fixed Assets 600 600 Accumulated Depreciation 100 Ending Book Value 600 500 Salvage Value Ending Book Value Capital Gains Capital Gains Tax Salvage Value Captial Gains Tax Net Proceeds from Sale of Fixed Assets Year 0 Year 1 Notation: PV = Present value of remaining cash flows as of the end of year 0. NPV = Net present value. PV1 = Present value of remaining cash flows as of the end of year 1. CF1 = Free cash flow in year 1. LN(PV1+CF1) = Natural logarithm of (PV1+CF1).
600 600 200 300 400 300 100 300 (200) (80) 100 -80 180 Year 2 Year 3

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• Spring '17
• Depreciation, Generally Accepted Accounting Principles, ADDIN

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