NPV CalculationYear 0 1 2 3 4 5Capital Outflow -100000Cash Inflows 28000 28000 28000 28000 28000PV Factor 1 0.909091 0.826446 0.751315 0.683013 0.620921Total -100000 28000 28000 28000 28000 28000PV of Cash Flows -100000 25454.55 23140.5 21036.81 19124.38 17385.8NPV 6142.03

NPV Calculation (Model)

Model Inputs Management Summary

Cash OutFlows 120000 NPVHomogeneous Cash Inflows 35000 DecisionDiscount Rate 10%Minimum NPV Criteria 7000

Processing AreaYear 0 1 2 3Cash Outflows -120000Cash Inflows 35000 35000 35000

Total -120000 35000 35000 35000PV Factor 1 0.909091 0.826446 0.751314800901578OutPut AreaPV of Cash flows -120000 31818.18 28925.62 26296.0180315552NPV 12677.53693

NPV using Function $12,677.54

12677.5369293Accept

4 5

35000 35000

35000 350000.683013455365071 0.620921

23905.4709377775 21732.25

NPV Calculation (Model)

Model Inputs Management Summary

Cash OutFlows 120000 NPVHomogeneous Cash Inflows 35000 DecisionDiscount Rate 10%Minimum NPV Criteria 7000

Processing AreaYear 0 1 2 3Cash Outflows -120000Cash Inflows 35000 35000 35000

Total -120000 35000 35000 35000PV Factor 1 0.909091 0.826446 0.751314800901578OutPut AreaPV of Cash flows -120000 31818.18 28925.62 26296.0180315552NPV 12677.536929

NPV using Function $12,677.54

Data Table Data Table (Two Variable)Discount Rate NPV

12677.5369293 12677.54 12677.54

Accept 0.01 49870.09 0.010.02 44971.08 0.020.03 40289.75 0.030.04 35813.78 0.040.05 31531.68 0.05

4 5 0.06 27432.73 0.060.07 23506.91 0.07

35000 35000 0.08 19744.85 0.080.09 16137.79 0.09

35000 35000 0.1 12677.54 0.10.683013455365071 0.620921 0.11 9356.396

0.12 6167.16723905.4709377775 21732.25 0.13 3103.094

0.14 157.83390.15 -2674.5720.16 -5399.7220.17 -8022.8840.18 -105490.19 -12982.78

0.2 -15328.58

Data Table (Two Variable)

20000 25000 30000 35000

-22931.38 1335.781 25602.94 49870.09-25730.81 -2163.512 21403.79 44971.08-28405.86 -5507.32 17391.22 40289.75-30963.55 -8704.442 13554.67 35813.78-33410.47 -11763.08 9884.3 31531.68-35752.72 -14690.91 6370.914 27432.73-37996.05 -17495.06 3005.923 23506.91

-40145.8 -20182.25 -218.6989 19744.85-42207 -22758.72 -3310.462 16137.79

-44184.26 -25230.33 -6276.397 12677.54

Scenario SummaryCurrent Values: Good Avergae Bad

Changing Cells:$B$4 100000 120000 100000 90000$B$5 25000 35000 25000 20000$B$6 12% 10% 12% 15%

Result Cells:$F$5 Reject Accept Reject Reject

Notes: Current Values column represents values of changing cells attime Scenario Summary Report was created. Changing cells for eachscenario are highlighted in gray.

NPV Calculation (Model)

Model Inputs Management Summary

Cash OutFlows 100000 NPVHomogeneous Cash Inflows 25000 DecisionDiscount Rate 12%Minimum NPV Criteria 7000

Processing AreaYear 0 1 2 3Cash Outflows -100000Cash Inflows 25000 25000 25000

Total -100000 25000 25000 25000PV Factor 1 0.892857 0.797194 0.711780247813411OutPut AreaPV of Cash flows -100000 22321.43 19929.85 17794.5061953353NPV -9880.594941

NPV using Function ($9,880.59)

-9880.5949414Reject

4 5

25000 25000

25000 250000.635518078404831 0.567427

15887.9519601208 14185.67

NPV Calculation (Model)

Model Inputs Management Summary

Cash OutFlows 120000 NPVHomogeneous Cash Inflows 34192.307762 DecisionDiscount Rate 11%Minimum NPV Criteria 7000

Processing AreaYear 0 1 2 3Cash Outflows -120000Cash Inflows 34192.31 34192.31 34192.307762048

Total -120000 34192.31 34192.31 34192.307762048PV Factor 1 0.902503 0.814511 0.735098303229807OutPut AreaPV of Cash flows -120000 30858.65 27850.01 25134.7074193928NPV 7000

NPV using Function $7,000.00

7000Reject

4 5

34192.307762048 34192.31

34192.307762048 34192.310.663428147801399 0.598746

22684.1394076309 20472.5

Using Solver

Independent Variablesa 0b 0c 0

Target Cell 0

ConstraintsFirst Constraint 0Second Constraint 0Third Constraint 0

We Want to MAximize the Value of: 3a + 2b + 5c, where a,b,c are three independent variables of the problem. you can think of a,b,c as the quantities of three products a company sells at profit margins of $3, $2, and $5 per unit of sales, respectively. in that case the formula is the total profit from sales, and the company wants to maximize total profit.

Constraints:1. a,b,c can not be negative.2. 3a + b <= 103. b + 2c <= 64. 2a + b + c <= 8

We Want to MAximize the Value of: 3a + 2b + 5c, where a,b,c are three independent variables of the problem. you can think of a,b,c as the quantities of three products a company sells at profit margins of $3, $2, and $5 per unit of sales, respectively. in that case the formula is the total profit from sales, and the company wants to maximize total profit.

Constraints:1. a,b,c can not be negative.2. 3a + b <= 103. b + 2c <= 64. 2a + b + c <= 8