M4 Assignment 2: Project Financing

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M3_order_87824_219088.xlsx
Home>Business & Finance homework help>Management homework help>M4 Assignment 2: Project Financing

Sheet1

Scenario - 1
Option 1
buying a nissan rogue @32000 and downpay of 10000
Down 10000
Rate 4%
Instalment 3667
number of years 6
Year Cash Flow DF DCF
0 -10000 1 -10000
1 -3667 0.9523809524 -3492
2 -3667 0.9070294785 -3326
3 -3667 0.8638375985 -3168
4 -3667 0.8227024748 -3017
5 -3667 0.7835261665 -2873
6 -3667 0.74622 -4914
NPV -30790.1909512032
Option 2
leasing the nissan rogue @$360 for 6 years
Down 3500
Rate 1.200%
Instalment Amount 311
No.of months 72
Month Cash Flow DF DCF
0 -3500 1 -3500
1 -311 0.9958473167 -310
2 -311 0.9917118782 -308
3 -311 0.9875936128 -307
4 -311 0.9834924493 -306
5 -311 0.9794083166 -305
6 -311 0.975341144 -303
7 -311 0.9712908611 -302
8 -311 0.9672573978 -301
9 -311 0.9632406841 -300
10 -311 0.9592406506 -298
11 -311 0.955257228 -297
12 -311 0.9512903472 -296
13 -311 0.9473399397 -295
14 -311 0.9434059369 -293
15 -311 0.9394882708 -292
16 -311 0.9355868736 -291
17 -311 0.9317016776 -290
18 -311 0.9278326156 -289
19 -311 0.9239796206 -287
20 -311 0.9201426258 -286
21 -311 0.9163215649 -285
22 -311 0.9125163716 -284
23 -311 0.9087269801 -283
24 -311 0.9049533247 -281
25 -311 0.9011953402 -280
26 -311 0.8974529613 -279
27 -311 0.8937261234 -278
28 -311 0.8900147618 -277
29 -311 0.8863188124 -276
30 -311 0.882638211 -275
31 -311 0.8789728941 -273
32 -311 0.875322798 -272
33 -311 0.8716878596 -271
34 -311 0.868068016 -270
35 -311 0.8644632044 -269
36 -311 0.8608733625 -268
37 -311 0.8572984281 -267
38 -311 0.8537383392 -266
39 -311 0.8501930342 -264
40 -311 0.8466624518 -263
41 -311 0.8431465308 -262
42 -311 0.8396452103 -261
43 -311 0.8361584296 -260
44 -311 0.8326861285 -259
45 -311 0.8292282467 -258
46 -311 0.8257847244 -257
47 -311 0.8223555019 -256
48 -311 0.81894052 -255
49 -311 0.8155397193 -254
50 -311 0.8121530411 -253
51 -311 0.8087804268 -252
52 -311 0.8054218178 -250
53 -311 0.802077156 -249
54 -311 0.7987463836 -248
55 -311 0.7954294428 -247
56 -311 0.7921262763 -246
57 -311 0.7888368267 -245
58 -311 0.7855610372 -244
59 -311 0.782298851 -243
60 -311 0.7790502116 -242
61 -311 0.7758150628 -241
62 -311 0.7725933485 -240
63 -311 0.769385013 -239
64 -311 0.7661900007 -238
65 -311 0.7630082563 -237
66 -311 0.7598397246 -236
67 -311 0.7566843509 -235
68 -311 0.7535420804 -234
69 -311 0.7504128588 -233
70 -311 0.7472966318 -232
71 -311 0.7441933456 -231
72 -311 0.7411029463 -230
NPV -22809
Scenario - 2
Option 1
buying a house fo $300000 and downpayment of $60000
Cost 300000
Down 60000
Rate 5%
Instalment 48000
No.of Years 5
Year Cash Flow DF DCF
0 -60000 1 -60000
1 -48000 0.9523809524 -45714
2 -48000 0.9070294785 -43537
3 -48000 0.8638375985 -41464
4 -48000 0.8227024748 -39490
5 -48000 0.7835261665 -37609
NPV -267815
Option 2
leasing the house @ 1700 per month
Down 0
Rate 0.017%
Instalment Amount 1700
No.of months 60
Month Cash Flow DF DCF
0 0 1 0
1 -1700 0.9998300289 -1700
2 -1700 0.9996600867 -1699
3 -1700 0.9994901734 -1699
4 -1700 0.9993202889 -1699
5 -1700 0.9991504333 -1699
6 -1700 0.9989806066 -1698
7 -1700 0.9988108088 -1698
8 -1700 0.9986410398 -1698
9 -1700 0.9984712997 -1697
10 -1700 0.9983015884 -1697
11 -1700 0.998131906 -1697
12 -1700 0.9979622524 -1697
13 -1700 0.9977926277 -1696
14 -1700 0.9976230318 -1696
15 -1700 0.9974534647 -1696
16 -1700 0.9972839264 -1695
17 -1700 0.9971144169 -1695
18 -1700 0.9969449363 -1695
19 -1700 0.9967754845 -1695
20 -1700 0.9966060614 -1694
21 -1700 0.9964366672 -1694
22 -1700 0.9962673018 -1694
23 -1700 0.9960979651 -1693
24 -1700 0.9959286572 -1693
25 -1700 0.9957593781 -1693
26 -1700 0.9955901278 -1693
27 -1700 0.9954209063 -1692
28 -1700 0.9952517135 -1692
29 -1700 0.9950825494 -1692
30 -1700 0.9949134142 -1691
31 -1700 0.9947443076 -1691
32 -1700 0.9945752298 -1691
33 -1700 0.9944061808 -1690
34 -1700 0.9942371605 -1690
35 -1700 0.9940681689 -1690
36 -1700 0.993899206 -1690
37 -1700 0.9937302719 -1689
38 -1700 0.9935613664 -1689
39 -1700 0.9933924897 -1689
40 -1700 0.9932236417 -1688
41 -1700 0.9930548224 -1688
42 -1700 0.9928860318 -1688
43 -1700 0.9927172698 -1688
44 -1700 0.9925485366 -1687
45 -1700 0.992379832 -1687
46 -1700 0.9922111561 -1687
47 -1700 0.9920425089 -1686
48 -1700 0.9918738903 -1686
49 -1700 0.9917053004 -1686
50 -1700 0.9915367392 -1686
51 -1700 0.9913682066 -1685
52 -1700 0.9911997026 -1685
53 -1700 0.9910312273 -1685
54 -1700 0.9908627806 -1684
55 -1700 0.9906943626 -1684
56 -1700 0.9905259732 -1684
57 -1700 0.9903576124 -1684
58 -1700 0.9901892802 -1683
59 -1700 0.9900209766 -1683
60 -1700 0.9898527017 -1683
NPV -101473