[Company Name] Net Present Value — [Equipment]
[Date]
Operational Costs
Cost of equipment Fixed costs Vehicle insurance Driver pay Miscellaneous Maintenance Depreciation New sales Profit per sale Courier delivery charge Number of deliveries Sale of equipment Interest rate
Value
$14,500 $0 $1,600 $16,200 $0 Variable N/A 125 $5 $16 1,250 $2,300 5% [Company Name] CONFIDENTIAL
Gray cells will be calculated for you and do not require any entry.
Expenses
Term in years 0 1 2 3 4 5 6 7 8 9 10
Income
New sales Money saved generated by Equipment by project project sales $20,000 20,000 20,000 20,000 20,000 20,000 $625 625 625 625 625 625 Cumulative cash flow $14,500 11,875 9,300 6,775 4,350 2,075 2,350 0 0 0 0
Fixed costs Other costs $14,500 17,800 $200 17,800 250 17,800 300 17,800 400 17,800 550 17,800 700
Total $14,500 18,000 18,050 18,100 18,200 18,350 18,500 0 0 0 0
Total $20,625 20,625 20,625 20,625 20,625 22,925 0 0 0 0
2,300
Cash flow $14,500 2,625 2,575 2,525 2,425 2,275 4,425 0 0 0 0 2,350 $404
NPV =
1 of 2
8/13/2008
Cash Flow — [Equipment]
$6,000 $4,000 $2,000 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000
Cumulative cash flow Cash flow
0
1
2
3
4
5
6
7
8
9
10
Year