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A COMPANY has developed the following cash flows forecasting the project

Particulars

investmenet 400
sales 440
v.c 330
f.c 20
dep 40
free tax profit 50
tax 10
pat 40
cash flow from operation 80
net cash flow 80
Project life duartion 10
What is npv of the new project assume that the cost of capital Is 10% the range of values that the un

underline pessimistic

investmenet 420
sales 350
v.c 80
f.c 25
cost of capital 11%

what are NPV under diff scenarios?


CAL the accounting and financial break even point of the new project

INVESTMENT
pessimistic
investmenet 420
sales 350
v.c 280
f.c 25
dep 40
pre tax profit 5
tax 1
pat 4
cash flow from operation 44
net cash flow 44
NPV -160.8737915098

65.1465798046
25.1465798046
31.4332247557
91.4332247557
365.7328990228
apital Is 10% the range of values that the underlined variables can take under 3 sec as follo

expected optimistic

400 360
440 500
75 70
20 18
10% 9%

expected optimistic year P E


400 360 1 0.900901 0.909091
440 500 2 0.811622 0.826446
330 350 3 0.731191 0.751315
20 18 4 0.658731 0.683013
40 40 5 0.593451 0.620921
50 92 6 0.534641 0.564474
10 18.4 7 0.481658 0.513158
40 73.6 8 0.433926 0.466507
80 113.6 9 0.390925 0.424098
80 113.6 10 0.352184 0.385543
91.5653684564 369.0459148517 NPV 5.889232 6.144567
0
0.917431
0.84168
0.772183
0.708425
0.649931
0.596267
0.547034
0.501866
0.460428
0.422411
6.417658
5

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