Question: How do I calculate the NPV given the below information? Can you do a step by step for me? (The NPV is given here but
How do I calculate the NPV given the below information? Can you do a step by step for me? (The NPV is given here but how could I calculate it without using Excel? Is that possible?) I just want to be able to do it manually just in case.
| Discount rate | 8% | ||||||||||
| PROJECT A | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | TOTAL |
| Benefits | $ - | $ 1,000.00 | $ 1,000.00 | $ 2,000.00 | $ 5,000.00 | $ 5,000.00 | $ 7,000.00 | $ 7,000.00 | $ 2,000.00 | $ 2,000.00 | $ 32,000.00 |
| Costs | $ 5,000.00 | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | $ 2,000.00 | $ 2,000.00 | $ 2,500.00 | $ 2,500.00 | $ 1,000.00 | $ 1,000.00 | $ 19,000.00 |
| Cash Flow | $ (5,000.00) | $ - | $ - | $ 1,000.00 | $ 3,000.00 | $ 3,000.00 | $ 4,500.00 | $ 4,500.00 | $ 1,000.00 | $ 1,000.00 | $ 13,000.00 |
| NPV | $6,058.02 | ||||||||||
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