How Much Is Next Year's Money Worth Today? Double Checking From Value Today To Next Year
How Much Is Next Year's Money Worth Today? Double Checking From Value Today To Next Year
How Much Is Next Year's Money Worth Today? Double Checking From Value Today To Next Year
Year 1 2 3 4
Cost ($800,000)
Benefit $200,000 $200,000 $200,000
Net ($800,000) $200,000 $200,000 $200,000
NPV ($166,027)
NPV ($166,027)
5
$200,000
$200,000
Calculating break-even using NPV function
Year 1 2 3 4
Cost ($800,000)
Benefit $200,000 $200,000 $200,000
Net ($800,000) $200,000 $200,000 $200,000
NPV (£41,843)
Year 1 2 3 4
Cost ($800,000)
Benefit $200,000 $200,000 $200,000
Net ($800,000) $200,000 $200,000 $200,000
NPV $71,052
5 6
$200,000 $200,000
$200,000 $200,000
5 6 7
Year 1 2 3 4 5
Cost ($500,000)
Benefit $60,000 $120,000 $150,000 $300,000
Net ($500,000) $60,000 $120,000 $150,000 $300,000
NPV
calculation below to show how($28,680)
value Present Value of each cashflow reduces, as it
gets further away
NPV ($28,680)