Based on the information provided below, compute the Net Present Value of the project (CO 3). A Net Present Value Template is Attached. (Hint: Don’t forget to update the discount rate to the amount required for this project and add your cash flow numbers.)Royal Dutch Shipping is planning on Investing $1,600,000 to buy a freighter. Prepare a net present value analysis based on the assumption that the freighter will be sold for 10% of its cost at the end of the year 5. Assume a 10% cost of capital. Annual operating cash flows for the project are:Year 1: $380,000Year 2: $390,000Year 3: $400,000Year 4: $410,000Year 5: $420,000Prepare a loan amortization schedule based on monthly payments for the $1,600,000 if Royal Dutch Shipping can pay 10% down on a loan for $1,600,000 and can get a loan for 6% interest for 10 years (do not include this in your Net Present Value computations. This is a separate issue. Attached is the file for the loan amortization Hint: www.bankrate.com/calculators/mortgages/amortization-calculator.aspx Year012345 Cash flows(1,600,000)380,000390,000400,000410,000580,000 Discount factor Present Value1.0000(1,600,000)0.9091345,4580.8264322,2960.7513300,5200.6830280,0300.6209…
Compute the Net Present Value of the project
Plagiarism-free and delivered on time!
We are passionate about delivering quality essays.
Our writers know how to write on any topic and subject area while meeting all of your specific requirements.
Unlike most other services, we will do a free revision if you need us to make corrections even after delivery.