Question

Net Present Value Calculation

Initial Investment	Discount Rate	Net Benefit Year 1	Net Benefit Year 2	New Benefit Year 3	Present Value	Is this a worthwhile investment?
100,000	.06	50,000	50,000	50,000
100,000	.12	50,000	50,000	50,000
100.000	.24	50,000	50,000	50,000
200,000	.06	80,000	80,000	80,000
200,000	.36	100,000	100,000	100,000
500,000	.36	200,000	350,000	500,000
500,000	.36	500,00	350,000	200,000

Answer 1

Initial	Discount	Benefit Yr-1	PVF-Yr1	Benefit	PVF Yr-2	Benefit	PVF	Present	Net		Is Investment
Investment	Rate			Yr-2		Year-3	Yr-3	Value	Present value		Worthwhile
100000	6%	50000	0.943396	50000	0.889996	50000	0.839619	133650.6	33650.6		Yes
100000	12%	50000	0.892857	50000	0.797194	50000	0.71178	120091.6	20091.56		Yes
100000	24%	50000	0.806452	50000	0.650364	50000	0.524487	99065.15	-934.846		No
200000	6%	80000	0.943396	80000	0.889996	80000	0.839619	213841	13840.96		Yes
200000	36%	100000	0.735294	100000	0.540657	100000	0.397542	167349.4	-32650.6		No
500000	36%	200000	0.735294	350000	0.540657	500000	0.397542	535060	35060.04		YEs
500000	36%	50000	0.735294	350000	0.540657	200000	0.397542	305503.3	-194497		No