SCIENCE ASSIGNMENT(NO PLAGIARISM, A++ WORK, QUALITY, ON TIME)

Sheet1

	PROJECT APPRAISAL USING THE NET PRESENT VALUE CRITERA ASSUMING A 10% COST OF CAPITAL.
			year	cashflow	PVIF,10%,	PVCiF
			1	186000	0.9091	169092.6
			2	218160	0.8264	180287.424
			3	194735	0.7513	146304.4055
			4	282480	0.683	192933.84
			5	314640	0.6209	195359.976
			∑PVCif '000'			883978.2455
			PVCoF '000'			126000
			NET PRESENT VALUE			757978.2455
		Graph showing the NPV of the project.
		PViF, 10%= The minimum requried rate of return or the discounting factor.
		Pvcif= the present value cash inflows
		Pvcof =the present cash outflows/ the cost of capital
		NPV= The difference between Pvcif and Pvcof
		Whenever the NPV is positive, then the project should be accepted. In this case I wolud advise
		the mayor and the city council to allow the New Orleans Baby Cakes Baseball team to move to the city.
		2.2 million is available in capital funds for the NOLA Babycakes in the event there is a season. This would be short of what is required to operate successfully, generate more revenue and perhaps sell in the future.

cashflow 1.0 2.0 3.0 4.0 5.0 ∑PVCif '000' PVCoF '000' NET PRESENT VALUE 186000 218160 194735 282480 314640 PVIF,10%, 1.0 2.0 3.0 4.0 5.0 ∑PVCif '000' PVCoF '000' NET PRESENT VALUE 0.90910000000000002 0.82640000000000002 0.75129999999999997 0.68300000000000005 0.62090000000000001 PVCiF 1.0 2.0 3.0 4.0 5.0 ∑PVCif '000' PVCoF '000' NET PRESENT VALUE 169092.6 18 0287.424 146304.40549999999 192933.84000000003 195359.976 883978.24549999996 126000 757978.24549999996

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Sheet3