Page 107 - BOSC-P Vodafone Apr 2017
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Presenting Net Present Value
Cost of Capital or Hurdle
Rate
10% Year Cash Flow 10% NPV NPV Values
Factors
0 (50,000) 1.000 (50,000)
1 50,000 0.909091 45,455
2 50,000 0.826446 41,322
3 50,000 0.751315 37,566
4 50,000 0.683013 34,151
5 50,000 0.620921 31,046
Sum 139,539
If Sum > 0, it covers the Cost of Capital
