DCSAMPLE.XLSVIP

SampleDiscountedCashFlowAnalysisfor2PotentialStrategiesPage1Note:ThepresentvalueportionofthecalculationsbelowuseExcelsNPVfunction(Insertpull-downmenu,Function,Financial,NPV).StrategyACompanysestimatedcostofcapital0.07InitialcashoutlayforStrategyA,timezero$(600,000)CashinflowsduetoStrategyA,year1$50,000CashoutflowsduetoStrategyA,year1$100,000Netcashflow,year1$(50,000)CashinflowsduetoStrategyA,ye...