Page 118 - BOSC-P Vodafone Apr 2017
P. 118

Discounted Cash Flow Model Exercise



         Project 3 with hurdle rate of 18%







                                                                             18% NPV
                                 Year             Cash Flow                                         NPV Values
                                                                              Factors

                                   0                    (100,000)               1.000                    (100,000)
                                   1                       12,500          0.847457627                       10,593

                                   2                       35,000           0.71818443                       25,136

                                   3                       40,000          0.608630873                       24,345

                                   4                       40,000          0.515788875                       20,632
                                   5                       40,000          0.437109216                       17,484

                                                                                          Sum               (1,809)

                                                                                           IRR                   N/A

                                                                      Months To Payback                          N/A
   113   114   115   116   117   118   119   120   121   122   123