Cash Flow Calculations

Month Cash Flows Cash Flows Cash Flows

Initial Investment (20,000.00) (20,000.00) (20,000.00)
June 4,000.00 4,000.00 4,000.00
July 5,000.00 5,000.00 5,000.00
August 10,000.00 10,000.00 10,000.00
September 2,000.00 2,000.00 2,000.00
($2,408.54) ($2,601.22) ($2,601.22)
-- Caution --
 NPV Example

Discount Rate: 10%

Time Cash Flow

0 ($200,000.00)
1 20,000.00
2 22,500.00
3 25,000.00
4 27,500.00
5 30,000.00
6 32,500.00
7 35,000.00
8 37,500.00
9 40,000.00
10 42,500.00

NPV = ($19,880.30)
Calculating a Required Initial Investment

Discount Rate: 10%

Time Cash Flow

0 $0.00
1 20,000.00
2 22,500.00
3 25,000.00
4 27,500.00
5 30,000.00
6 32,500.00
7 35,000.00
8 37,500.00
9 40,000.00
10 42,500.00

NPV= $180,119.70
Calculating Value of a Cash Flow with Initial Flow

Rate: 10%

Time Cash Flow

0 $ 30,000.00
1 30,000.00
2 32,500.00
3 32,500.00
4 35,000.00
5 35,000.00
6 40,000.00
7 40,000.00

NPV= $ 197,292.96
 Cash Flows with Terminal Values

Rate: 10%

Time Income Flow Capital Flow Cash Flow

0 $ 30,000.00 $ 30,000.00
1 30,000.00 30,000.00
2 32,500.00 32,500.00
3 32,500.00 32,500.00
4 35,000.00 35,000.00
5 35,000.00 35,000.00
6 40,000.00 40,000.00
7 40,000.00 450,000.00 490,000.00

NPV= $ 428,214.11
 Cash Flows with a Terminal Value

Rate: 10%

Time Income Flow Capital Flow Cash Flow

0 $ 30,000.00 ($360,000.00) $ (330,000.00)
1 30,000.00 30,000.00
2 32,500.00 32,500.00
3 32,500.00 32,500.00
4 35,000.00 35,000.00
5 35,000.00 35,000.00
6 40,000.00 40,000.00
7 40,000.00 450,000.00 490,000.00

NPV= $ 68,214.11
 Multiple Outflows

Rate: 10%

Time Capital Flow Gross Margin Fixed Expenses Cash Flow

0 $ (475,000.00) $ - $ (25,000.00) $ (500,000.00)
1 - - (25,000.00) (25,000.00)
2 - 20,000.00 (25,000.00) (5,000.00)
3 - 40,000.00 (25,000.00) 15,000.00
4 - 100,000.00 (25,000.00) 75,000.00
5 (225,000.00) 175,000.00 (25,000.00) (75,000.00)
6 - 200,000.00 (25,000.00) 175,000.00
7 - 250,000.00 (25,000.00) 225,000.00
8 - 275,000.00 (25,000.00) 250,000.00
9 - 275,000.00 (25,000.00) 250,000.00
10 - 275,000.00 (25,000.00) 250,000.00

NPV= $ 22,347.71
 Non-Annual Cash Flows

Effective Annual Interest Rate 7%

Cash Flow Frequency 4
Interest Rate Per Period 1.70585% Quarterly

Period Revenue Flow Capital Flow Cash Flow

0 $ 12,000.00 $ (700,000.00) $ (688,000.00)
1 12,000.00 12,000.00
2 12,000.00 12,000.00
3 12,000.00 12,000.00
4 12,000.00 12,000.00
5 12,000.00 12,000.00
6 12,000.00 12,000.00
7 12,000.00 12,000.00
8 12,000.00 12,000.00
9 12,000.00 12,000.00
10 12,000.00 12,000.00
11 12,000.00 12,000.00
12 900,000.00 900,000.00

NPV: $ 166,099.72

Annualizing the flow

Period Revenue Flow Capital Flow Cash Flow

0 $ (700,000.00) $ (700,000.00)
1 48,000.00 48,000.00
2 48,000.00 48,000.00
3 48,000.00 900,000.00 948,000.00

NPV: $ 160,635.26

Error due to annualization $5,464.46

3.29%
 Calculating FV using NPV Function

Rate: 10%

Time Cash Flow Interest Cumulative Balance

0 $ 100,000.00 $ 100,000.00
1 40,000.00 10,000.00 150,000.00
2 30,000.00 15,000.00 195,000.00
3 20,000.00 19,500.00 234,500.00
4 50,000.00 23,450.00 307,950.00
5 20,000.00 30,795.00 358,745.00
6 50,000.00 35,874.50 444,619.50
7 30,000.00 44,461.95 519,081.45

NPV= $ 266,370.86

Future Value $ 519,081.45 (Checks with final balance)

 Calculating Equivalent Payments with NPV

Interest Rate: 7%
Cash Flow Frequency: 12
Interest Rate Per Period: 0.56541% Monthly
Payment Type: 1

Time Cash Flow

0 $10,000.00
1 $10,000.00
2 $10,000.00
3 $10,500.00
4 $10,500.00
5 $10,500.00
6 $11,250.00
7 $11,250.00
8 $11,250.00
9 $12,000.00
10 $12,000.00
11 $12,000.00
12

NPV= $127,100.53

Equivalent Single Payment: $10,923.24

Check using PV: $127,100.53