NPV examples

Q1
Yr 6.50% Yr 9.00%
1 10000 9389.67 1 10000 9174.31
2 10000 8816.592828 2 10000 8416.8
3 10000 8278.490918 3 10000 7721.835
NPV 26484.76 NPV 25312.95
Direct formula Direct formula

Yr 6.50% Yr 9.00%
2 5000 4408.296414 2 5000 4208.4
5 7000 5109.165856 5 7000 4549.52

Q2. 10% 14% 17%

Yr Cash flows PV
0 -31,000 -31000 -31000 -31000
1 20,000 18181.82 17543.86 17094.02
2 25,000 20661.16 19236.69 18262.84
3 28,000 21036.81 18899.2 17482.38
4 32,000 21856.43 18946.57 17076.8
5 45,000 27941.46 23371.59 20525
NPV 78677.67974 66997.91 59441.03

78,677.68
APPLE
Price Q dem. Q supp
180 8560
184 8528
146 8832
100 9200
105 9160
161 8712
160 8720
85 9320
70 9440
130 8960

Q d = 10,000 - 8P
Q s = 5000+ 25P

Units of MU of MU of
food rice cottage MU of
P D S cups/day crispies cheese pop corn
70 9440 6750 1 175 72 90
85 9320 7125 2 150 66 80
100 9200 7500 3 125 60 70
105 9160 7625 4 100 54 60
130 8960 8250 5 75 48 50
146 8832 8650 6 50 36 40
160 8720 9000 7 25 30 30
161 8712 9025 8 25 18 20
180 8560 9500
184 8528 9600 161
P D S
151.5 8788 8787.5
MU/C of MU/C of
rice cottage MU/C of
crispies cheese pop corn
7 12 9
6 11 8
5 10 7
4 9 6
3 8 5
2 6 4
1 5 3
1 3 2