When cash inflows are even: NPV = R × 1 − (1 + i)-n − Initial Investment i In the above formula‚ R is the net cash inflow expected to be received each period; i is the required rate of return per period; n are the number of periods during which the project is expected to operate and generate cash inflows. When cash inflows are uneven: NPV = R1 + R2 + R3 + ... − Initial Investment (1 + i)1 (1 + i)2 (1 + i)3 Where‚ i is the target rate of return per period;
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Net Present Value Net Present Value (NPV) is used in capital budgeting to analyze the profitability of an investment or project. NPV is found by subtracting the present value of the after-tax outflows from the present value of the after-tax inflows. Investments with a positive NPV increase shareholder value and those with a negative NPV reduce shareholder value. In order to compute the NPV for Worldwide Paper Company‚ we have to calculate the cash flow in capital budgeting of the project as below
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assess whether it is viable to invest or not the NPV technique can be used to compare the present value of returns and costs. If the NPV is negative it implies that costs exceed returns and hence it would not be advisable to invest in such projects. There are also other investment appraisal techniques that are employed apart from the NPV; these are the pay back method‚ accounting rate of return and internal rate of return method. Net present value (NPV) is generally considered as the most correct method
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this online NPV Calculation Tool http://finance.thinkanddone.com/online-n… we get the following NPV at 15% Net Cash Flows CF0 = -3000000 CF1 = 1100000 CF2 = 1450000 CF3 = 1300000 CF4 = 950000 Discounted Net Cash Flows DCF1 = 1100000/(1+0.15)^1 = 1100000/1.15 = 956521.74 DCF2 = 1450000/(1+0.15)^2 = 1450000/1.3225 = 1096408.32 DCF3 = 1300000/(1+0.15)^3 = 1300000/1.52087 = 854771.1 DCF4 = 950000/(1+0.15)^4 = 950000/1.74901 = 543165.58 NPV Calculation NPV = 956521.74 +
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The crossover rate‚ where the NPVs are the same is 8.16%. Project A Project B Required Return 8.25% Required Return 8.25% Cash Flows Period Cash Flows Cash Flows Period Cash Flows Initial Outlay -8‚500 0 -8‚500 Initial Outlay -9‚500 0 -9‚500 1 3‚600 1 3‚900 2 2‚400 2 2‚900 3 2‚850 3 2‚900 4 5‚200 4 5‚550 Discounted Payback Period 3.23 Discounted Payback Period 3.28 NPV $2‚907.51 NPV $2‚905.64 Profitability Index
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Subject : Introduction to satellite (SCM01D4) Introduction Eclipses can only occur when the Sun‚ Earth‚ and Moon are all in a straight line. Solar occur at new moon‚ when the Moon is between the Sun and Earth and in contrast‚ lunar eclipses occur at full moon‚ when Earth is between the Sun and Moon. The apparent size of the Moon is roughly the same as that of the Sun‚ with both being viewed at close
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Satellite communication‚ in telecommunications‚ is the use of artificial satellites to provide communication links between various points on Earth. Satellite communications play a vital role in the global telecommunications system. Approximately 2‚000 artificial satellites orbiting Earth relay analog and digital signals carrying voice‚ video‚ and data to and from one or many locations worldwide. Satellite communication has two main components: the ground segment‚ which consists of fixed or mobile
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TONG UNIVERSITY 学士学位论文 THESIS OF BACHELOR 论文题目 Corporate Governance Arrangement: Pension Investment Scheme Case Study: British Airways 学生姓名: 学院(系): 安泰经济与管理学院 指导教师: 倪旸 课程名称： 公司治理 Abstract This paper identifies some of the main governance weaknesses that persist in pension fund systems by examining the case of British Airways. The paper highlights problems of poor planning in pension plans. The document sets out some challenges faced
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1 SATELLITE COMMUNICATION – AN INTRODUCTION Contents 1.1 Introduction 1.2 Basics 1.3 Applications of Satellites o Weather Forecasting o Radio and TV Broadcast o Military o Navigation o Global Telephone o Connecting Remote Areas o Global Mobile Communication 1.4 Frequency Allocation of Satellites 1.5 Types of Orbits o GEO o LEO o MEO o Sun Synchronous Orbit o Hohmann Transfer Orbit o Prograde Orbit o Retrograde Orbit o Polar Orbits 1.6 Examples o INTELSAT o U.S. Domsats o Polar Orbiting Satellites
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AN ALTERNATIVE TO EXISTING SPORT BROADCASTING RIGHTS MODELS AND THE CASE OF FOOTBALL BROADCASTING RIGHTS IN TURKEY A Dissertation By Sarp Tunçay Submitted to the Department of Sociology‚ City University In partial fulfilment of the requirements for the degree of Master of Arts (M.A.) Supervised by Petros Iosifidis March 2009 TABLE OF CONTENTS Page TABLE OF CONTENTS..................................................................................................ii ACKNOWLEDGEMENTS
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