The following are the cash inflows of ABC Ltd.
Years Cash inflows
Year 1 20,0000
Year 2 40,0000
Year 3 80,0000
Year 4 10,0000
Year 5 50,0000
If the discount rate is 10%. Calculate the Net present value of the cash inflows.
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Npv calculation for cash inflows
Replies (2)
(20000 x .909) + (40000 x .826) + (80000 x .751) + (100000 x .683) + (50000 x .621) = 179600
| Originally posted by : CA. Ankit Bhansali | ||
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(20000 x .909) + (40000 x .826) + (80000 x .751) + (100000 x .683) + (50000 x .621) = 179600 |
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| Year | Amount inflow | PV Factor | PV of Inflow |
| 1 | 200,000.00 | 0.909 | 181,800.00 |
| 2 | 400,000.00 | 0.826 | 330,400.00 |
| 3 | 800,000.00 | 0.751 | 600,800.00 |
| 4 | 100,000.00 | 0.683 | 68,300.00 |
| 5 | 500,000.00 | 0.621 | 310,500.00 |
| 2,000,000.00 | 1,491,800.00 |
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