power point

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assignment_4_step_3.xlsx
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Sheet1

Q10
Market rate 8%
Market riskpremium 5%
Risk free rate 3%
Beta 1.50
Expected return 10.50% All amount in Million $
year Cash outflows Revenues Loss of revenues Saving in cost Recovery of initial cost Net cash flows Payback
0 -120 0 0 0 0 -120 -120
1 -30 0 0 0 0 -30 -150
2 -30 0 0 0 0 -30 -180
3 -30 0 0 0 0 -30 -210
4 -55 95 -5 1 0 36 -174
5 -55 95 -5 1 0 36 -138
6 -55 95 -5 1 0 36 -102
7 -55 95 -5 1 0 36 -66
8 -55 95 -5 1 0 36 -30
9 -55 95 -5 1 0 36 6
10 -55 95 -5 1 0 36 42
11 -60 105 0 0 0 45 87
12 -60 105 0 0 0 45 132
13 -60 105 0 0 0 45 177
14 -60 105 0 0 0 45 222
15 -60 105 0 0 80 125 347
NPV @ 10.5% 13.78
Q11 NPV @ 6.5% $94.73
IRR 11.41%
Payback in years 8.83