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.
K K (Student) (55 Points)
21 January 2013The 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.
CA. Ankit Bhansali
(---)
(120 Points)
Replied 04 February 2013
(20000 x .909) + (40000 x .826) + (80000 x .751) + (100000 x .683) + (50000 x .621) = 179600
MD. RAFI
(Manager Accounts (future CA))
(670 Points)
Replied 04 February 2013
Originally posted by : CA. Ankit Bhansali | ||
(20000 x .909) + (40000 x .826) + (80000 x .751) + (100000 x .683) + (50000 x .621) = 179600 |
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 |