Revenue for first year=51*500000=$25.5mn
|
Year |
Revenue |
Salvage |
Operational Cost |
Net Cash Flow |
Present Value (Cash Flow/1.16^year) |
| 0 |
(32,500,000) |
0 |
0 |
(32,500,000) |
(32,500,000.00) |
| 1 |
25,500,000 |
0 |
700000 |
24,800,000 |
21,379,310.34 |
| 2 |
29,580,000 |
0 |
812000 |
28,768,000 |
21,379,310.34 |
| 3 |
34,312,800 |
0 |
941920 |
33,370,880 |
21,379,310.34 |
| 4 |
39,802,848 |
0 |
1092627.2 |
38,710,221 |
21,379,310.34 |
| 5 |
46,171,304 |
0 |
1267447.552 |
44,903,856 |
21,379,310.34 |
| 6 |
53,558,712 |
0 |
1470239.16 |
52,088,473 |
21,379,310.34 |
| 7 |
62,128,106 |
3,000,000 |
1705477.426 |
63,422,629 |
22,440,798.93 |
|
|
|
|
PW
(total) |
118,216,661.00 |
Hence, net present worth is $118.2 mn
