In: Finance
Calculation of Project's NPV
Year | Cashflows | Discount Rate @10% | Discounted Cashflows | Discount Rate @10% | Discounted Cashflows |
A | B | C = 1/(1+12%)^n | D = B*C | E = 1/(1+13.17%)^n | F = B*E |
1 | 6000 | 0.892857143 | 5357.142857 | 0.883626403 | 5301.758417 |
2 | 6000 | 0.797193878 | 4783.163265 | 0.78079562 | 4684.773718 |
3 | 6000 | 0.711780248 | 4270.681487 | 0.689931625 | 4139.589748 |
4 | 6000 | 0.635518078 | 3813.10847 | 0.6096418 | 3657.850798 |
5 | 6000 | 0.567426856 | 3404.561134 | 0.53869559 | 3232.173542 |
6 | 6000 | 0.506631121 | 3039.786727 | 0.476005647 | 2856.03388 |
7 | 6000 | 0.452349215 | 2714.095292 | 0.420611157 | 2523.666944 |
8 | 6000 | 0.403883228 | 2423.299368 | 0.371663124 | 2229.978743 |
9 | 6000 | 0.360610025 | 2163.66015 | 0.328411349 | 1970.468095 |
10 | 6000 | 0.321973237 | 1931.83942 | 0.290192939 | 1741.157635 |
11 | 7000 | 0.287476104 | 2012.332729 | 0.256422143 | 1794.955 |
12 | 7000 | 0.256675093 | 1796.725651 | 0.226581376 | 1586.06963 |
13 | 7000 | 0.22917419 | 1604.219331 | 0.200213286 | 1401.493002 |
14 | 7000 | 0.204619813 | 1432.338688 | 0.176913746 | 1238.39622 |
15 | 7000 | 0.182696261 | 1278.873829 | 0.156325657 | 1094.279597 |
16 | 7000 | 0.163121662 | 1141.851633 | 0.138133478 | 966.9343437 |
17 | 7000 | 0.145644341 | 1019.510387 | 0.122058388 | 854.4087158 |
18 | 7000 | 0.13003959 | 910.2771308 | 0.107854014 | 754.9781 |
19 | 7000 | 0.116106777 | 812.7474382 | 0.095302655 | 667.1185827 |
20 | 7000 | 0.103666765 | 725.6673556 | 0.084211942 | 589.4835934 |
NPV of the Project | 46635.88234 | 43285.5683 |
NPV of the Project at 12% discount rate is $46,635.88
NPV of the Project at 13.17% discount rate is $43,285.57