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Project Anna NPV Analysis

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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Abshir Maadaa
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58 views2 pages

Project Anna NPV Analysis

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.

Uploaded by

Abshir Maadaa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

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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