A B C D E F G H I J

1 Calculating NPV at Acron Range names used:

2
3 Inputs
4 Development cost 9.3
5 Gross margin year 1 1.2
6 Rate of increase 10%
7 Increase through year 8
8 Rate of decrease 5%
9 Discount rate 12%
10
11 Cash flows Sensitivity to years of increase (cell B7)
12 End of year Gross margin
13 1 3
14 2 4
15 3 5
16 4 6
17 5 7
18 6 8
19 7 9
20 8 10
21 9
22 10 Sensitivity to rate of increase in early years (cell B6) and years of increase (cell B7)
23 11 5% 6% 7% 8% 9% 10%
24 12 3
25 13 4
26 14 5
27 15 6
28 16 7
29 17 8
30 18 9
31 19 10
32 20
33
34 NPV