NPV Excel spreadsheet - The Jones Family Case

Book1_Wk2.xlsx

Sheet1

Annual Production
75*365		27375	26006.25	24705.94	23470.64	22297.11	21182.25	20123.14	19116.98	18161.13	17253.08	16390.42	15570.9	14792.36	14052.74	13350.1
Barrel price		102.5	105.0625	107.6891	110.3813	113.1408	115.9693	118.8686	121.8403	124.8863	128.0085	131.2087	134.4889	137.8511	141.2974	144.8298
100	*1.025
Charges		20.5	21.0125	21.53781	22.07626	22.62816	23.19387	23.77372	24.36806	24.97726	25.60169	26.24173	26.89778	27.57022	28.25948	28.96596
20	*1.025
Net Price		82	84.05	86.15125	88.30503	90.51266	92.77547	95.09486	97.47223	99.90904	102.4068	104.9669	107.5911	110.2809	113.0379	115.8639
		2244750	2185825.3	2128447	2072576	2018171	1965194	1913607	1863375	1814461	1766832	1720453	1675291	1631314	1588492	1546794
1		0.896057	0.8029188	0.719461	0.644679	0.577669	0.517625	0.463821	0.41561	0.372411	0.333701	0.299016	0.267935	0.240085	0.21513	0.192769
		2011425	1755040.2	1531335	1336145	1165834	1017232	887571.7	774438.1	675725	589594.3	514442.2	448869.2	391654.5	341732.6	298173.9	13739214
Rate		6%+0.8(7%)	=	11.60%
		Probability of These Outflows.				70%
		PV OF PROBABLE			13739214	*	70%	9617450
		Initial Investment						-5000000
		NPV						4617450