Question

Please calculate the yearly NPV and IRR. We want positive present value in 3 years. You may adjust Yearly O&M, Periodic Costs, interest rate (5%), or total debt as you see fit to meet these criteria. Revenue and Fees are in 1000s of dollars.

Year	Revenue	Growth	NPV	IRR	Total	45,500,000
2020	$1,813				Debit	80%
2021	$2,268	25.1%			Equity	20%
2022	$13,301	487.0%			i	5%
2023	$16,144	21.4%			No. of payments (n)	7
2024	$17,847	10.5%			Yearly O&M costs	500,000
2025	$19,679	10.3%			Periodic Costs (every 5 years)	1,500,000
2026	$21,164	7.5%			Yearly Payments (PMT)
					Yearly PMTS = (Total*Debt*i)/(1+i)^n
					Yearly PMTS = (45,500,000*0.8*0.05)/(1+0.05)^7
					=(45500000*0.8*0.05)/(1+0.05)^(7)
					1800000/1.05^7

Answer 1