Page 114 - BOSC-P Vodafone Apr 2017
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Discounted Cash Flow Model
Capital Investment Evaluation
Cost of
Capital 10% Project 1 Project 2 Project 3
• CapEx: • $35,000 • $50,000 • $100,000
• Year 1: • $5,000 • $20,000 • $12,500
• Year 2: • $7,500 • $25,000 • $35,000
• Year 3: • $10,000 • $30,000 • $40,000
• Year 4: • $12,500 • $35,000 • $40,000
• Year 5: • $12,500 • $40,000 • $40,000
Optional Evaluation:
What would be the implication of applying a hurdle rate of 18% to Project 3
