i t a i t i
n i e c n i s s w o l f h s a c f o
Cash flow diagram
m u $400,000 S
Discounted Nondiscounted
Plant startup
$300,000
$200,000
Net Present Value Discounted!
$100,000
$0
Discounted payback period -$100,000
-$200,000 0
2
4
6
8
10
12
Years Years since project initiation
A 1
B
C
D
E
F
Simulation of NP calculation
2 3
ll nubers in $1000 so, .or e%aple, $1,/00 is $1#/ illion!
G
H
I
J
K
L
"## "ilco%, &larkson ', (ct 2004! e)ised *une 200+
M
N
O
A 1
B
C
D
E
F
G
H
Simulation of NP calculation
2 3 4
I
J
K
L
7 8 9 10 11 12 13 14 15 16 17 18 19
N
O
ll nubers in $1000 so, .or e%aple, $1,/00 is $1#/ illion! CC) - $1!",#00 i#e#, $13#/ illion total capital in)estent, not discounted!
5 6
M
"## "ilco%, &larkson ', (ct 2004! e)ised *une 200+
n 0 1 2 3 4 / 6 + 8 10 11 12
Cland
C%C
Cstartup
CC
S&
C/d
'(
%
)
$120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000
$23,100 $23,100 $23,100 $23,100 $23,100 $23,100 $23,100 $23,100 $23,100 $23,100
$14,000 $22,400 $13,440 $8,064 $8,064 $4,032
$10,++0 $10,3/0 $13,038 $14,6/1 $14,6/1 $1/,860 $1+,0+0 $1+,0+0 $1+,0+0 $1+,0+0
$2,/00 $30,000 $40,000
$60,000 $+,000
-$2,/00
$200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 -$60,000 $200,000
20
C* -$2,/00 -$30,000 -$100,000 $3,130 $46,//0 $43,862 $42,24 $42,24 $41,040 $3,830 $3,830 $3,830 $102,330 NP -
%C* -$2,/00 -$2+,2+3 -$82,64/ $2,3 $31,+4 $2+,23/ $23,84 $21,681 $1,14/ $16,82 $1/,3/6 $13,60 $32,60/ $11",.""
otal %C* -$2,/00 -$2,++3 -$112,41+ -$83,018 -$/1,224 -$23,8 -$141 $21,/40 $40,68/ $/+,/++ $+2,33 $86,83 $11,4
otal %isc land C* + C -$2,/00 -$32,/00 -$132,/00 -$3,3+0 $46,/+ -$46,820 $42,688 -$2,/8 $38,808 $3,21 $3/,280 $81,/40 $32,0+2 $122,/80 $2,1/+ $162,410 $26,/06 $202,240 $24,06 $242,0+0 $21,06 $344,400 $1,14
21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41
&&5 otal capital in)estent, &5 &land A &D& A &startup A &"&, asssuin no royalties ust be paid .or process# n year since beinnin o. construction &land cost o. land &D& total depreciable capital 1#18&=A&siteA&buildinsA&o..site .acilities!
?&57!
&= otal bare odule cost installed cost o. all euipent, etc# 5nside attery 7iits 5n)estent 57! &startup startup cost &"& 9orkin capital sales re)enues .ro sale o. product! &(=d &ost o. anu.acturin 9it:out depreciation!# ;< ;eneral e%penses D Depreciation /-year =& used :ere! 5 ?ederal and state incoe ta% rB - &startup - &(=d - ;< - D! .or t:at year# r otal incoe ta% rate 30> used :ere! &? &as: .lo9 .or t:at year - &land - &D& - &startup - &"& - &(=d - ;< - 5 D&? Discounted cas: .lo9 .or t:at year &?C1Ai! n i euired rate o. return# :ere i 0#1 NPV Net present )alue t:e su o. D&? .or all years# D&? Discounted ta% .lo9 rate o. return is t:e )alue o. i at 9:ic: NPV 0# lso kno9n as t:e 5nternal ate o. eturn, 5! 'se ;oal eek to set cell @3+ so t:at cell 720 is 0# lternately, copy t:e &? colun and paste special )alues, t:en use t:e 5 .unction! :is i)es 28#0++>
A 42 43
B
C
D
E
F
G
H
I
J
Discounted payback period 9:en total D&? - Disc land A "&! bout 4#/ years :ere#
Documents Similar To Xls NPV Dan Payback Periods
K
L
M
N
O
