2024 – The below example is to be in Excel format Based on the information provided
Accounting For ASHLEY – 2024
2024 – The below example is to be in Excel format Based on the information provided.
The below example is to be in Excel format.
Based on the information provided below, compute the Net Present Value of the project (CO 3). A Net Present Value Template is Attached. (Hint: Don’t forget to update the discount rate to the amount required for this project and add your cash flow numbers.)
Annual operating cash flows
Royal Dutch Shipping is planning on Investing $1,600,000 to buy a freighter. Prepare a net present value analysis based on the assumption that the freighter will be sold for 10% of its cost at the end of the year 5. Assume a 10% cost of capital.
Year 1: $380,000
Year 2: $390,000
Year 3: $400,000
Year 4: $410,000
Year 5: $420,000
/calculators/mortgages/amortization-calculator
Prepare a loan amortization schedule based on monthly payments for the $1,600,000 if Royal Dutch Shipping can pay 10% down on a loan for $1,600,000 and can get a loan for 6% interest for 10 years (do not include this in your Net Present Value computations. This is a separate issue. (CO 3). (Hint: www.bankrate.com/calculators/mortgages/amortization-calculator.aspx )
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Discount rate |
>16%16% |
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Year |
Cash in (out) |
PV factors |
Cash flowsPV of cash flows |
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0 |
(80,000) |
1.0000 |
(80,000) |
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1 |
20,000 |
0.8621 |
17,241 |
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2 |
> 18,000 |
0.7432 |
13,377 |
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3 |
22,500 |
0.6407 |
14,415 |
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4 |
10,000 |
0.5523 |
5,523 |
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5 |
30,000 |
0.4761 |
14,283 |
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Net Present Value |
(15,161) |
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Internal rate of return |
7.81% |
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