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  • Net Present Value Calculations: This Project Will Be Accepted Because Its NPV Is Positive

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    Abshir Maadaa
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    This document contains net present value (NPV) calculations for 4 projects - Carol, George, Thomas, and Anna. It shows the cash flows and discounted values for each project over multiple years. Project Carol has a negative NPV of -$106,150. Project George has a negative NPV of -$77,325. Project Thomas has the largest negative NPV of -$381,600. Only Project Anna has a positive NPV of $56,670. Therefore, the document recommends investing in Project Anna since it is the only project with a positive NPV.

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    This document contains net present value (NPV) calculations for 4 projects - Carol, George, Thomas, and Anna. It shows the cash flows and discounted values for each project over multiple years. Project Carol has a negative NPV of -$106,150. Project George has a negative NPV of -$77,325. Project Thomas has the largest negative NPV of -$381,600. Only Project Anna has a positive NPV of $56,670. Therefore, the document recommends investing in Project Anna since it is the only project with a positive NPV.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    6 views2 pages

    Net Present Value Calculations: This Project Will Be Accepted Because Its NPV Is Positive

    Uploaded by

    Abshir Maadaa
    This document contains net present value (NPV) calculations for 4 projects - Carol, George, Thomas, and Anna. It shows the cash flows and discounted values for each project over multiple years. Project Carol has a negative NPV of -$106,150. Project George has a negative NPV of -$77,325. Project Thomas has the largest negative NPV of -$381,600. Only Project Anna has a positive NPV of $56,670. Therefore, the document recommends investing in Project Anna since it is the only project with a positive NPV.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    NET PRESENT VALUE CALCULATIONS

    3.11
    year outflow inflow pv factor NPV
    0 -125000 -125000 1 -125000
    1 35000 0.909 31815
    2 35000 0.826 28910
    3 35000 0.751 26285
    4 35000 0.683 23905
    5 35000 0.621 21735

    NPV 7650
    Decision
    this project will be accepted because its NPV is Positive

    3.12
    project carol

    year outflow inflow pv factor NPV


    0 -500000 -500000 1 -500000
    1 50000 0.813 40650
    2 250000 0.661 165250
    3 350000 0.537 187950

    NPV -106150
    project George

    year outflow inflow pv factor NPV


    0 -250000 -250000 1 -250000
    1 75000 0.813 60975
    2 75000 0.661 49575
    3 75000 0.537 40275
    4 50000 0.437 21850
    NPV -77325

    projetct thomas
    year outflow inflow pv factor NPV
    0 -1000000 -1000000 1 -1000000
    1 200000 0.813 162600
    2 200000 0.661 132200
    3 200000 0.537 107400
    4 200000 0.437 87400
    5 200000 0.355 71000
    6 200000 0.289 57800
    NPV -381600

    project Anna

    year outflow inflow pv factor NPV


    0 -75000 -75000 1 -75000
    1 15000 0.813 12195
    2 25000 0.661 16525
    3 50000 0.537 26850
    4 50000 0.437 21850
    5 150000 0.355 53250
    NPV 55670

    Decision
    I will recommend to invest project Anna because it’s the only project with
    positive NPV acording to other projects

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