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  • NPV Using Contstant Discounting

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    kayteemini
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    This document contains a calculation of net present value (NPV) using constant discounting for a project with cash flows over 5 periods. It shows the cash flows, discount rate of 8%, present value of each cash flow calculated individually, and a running total of present value. It also uses the NPV function in a spreadsheet to calculate NPV and gets the same result of $16,170.

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    Analysis of Financial Statements

    Original Title

    HW3

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    This document contains a calculation of net present value (NPV) using constant discounting for a project with cash flows over 5 periods. It shows the cash flows, discount rate of 8%, present value of each cash flow calculated individually, and a running total of present value. It also uses the NPV function in a spreadsheet to calculate NPV and gets the same result of $16,170.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
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    5 views2 pages

    NPV Using Contstant Discounting

    Uploaded by

    kayteemini
    This document contains a calculation of net present value (NPV) using constant discounting for a project with cash flows over 5 periods. It shows the cash flows, discount rate of 8%, present value of each cash flow calculated individually, and a running total of present value. It also uses the NPV function in a spreadsheet to calculate NPV and gets the same result of $16,170.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Finance 305, FALL 2012 HW No.

    3 Page 1

    NPV Using Constant Discounting


    (in thousands of $) Inputs
    $50.00 $0 $(50.00) 1

    Nominal Rate

    NPV Using Contstant Discounting

    5 Cash Flows Present Value of Each Cash Flow

    Nominal Discount Rate

    8.00%
    $(100.00) $(150.00)

    Period

    Net Present Value using a Time Line Period Cash Flows Present Value of Each Cash Flow New Present Value

    0 1 2 3 4 5 $ (100.00) $ 21.00 $ 34.00 $ 40.00 $ 33.00 $ 17.00 $ (100.00) $ 19.44 $ 29.15 $ 31.75 $ 24.26 $ 11.57 $ 16.17

    Net Present Value using the NPV Function Net Present Value $

    16.17

    Cash Flow

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