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Present Values 3
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Lecture1.1
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Lecture1.2
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Lecture1.3
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NPV vs. IRR 4
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Lecture2.1
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Lecture2.2
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Lecture2.3
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Lecture2.4
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Other Profit Measures 4
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Lecture3.1
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Lecture3.2
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Lecture3.3
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Lecture3.4
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Depreciation 4
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Lecture4.1
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Lecture4.2
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Lecture4.3
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Lecture4.4
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Cash Flow Challenges 9
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Lecture5.1
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Lecture5.2
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Lecture5.3
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Lecture5.4
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Lecture5.5
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Lecture5.6
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Lecture5.7
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Lecture5.8
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Lecture5.9
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Capital Asset Pricing Model 3
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Lecture6.1
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Lecture6.2
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Lecture6.3
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Risky Debt 3
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Lecture7.1
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Lecture7.2
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Lecture7.3
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Unlevering Equity 3
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Lecture8.1
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Lecture8.2
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Lecture8.3
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Weighted Average Cost of Capital 4
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Lecture9.1
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Lecture9.2
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Lecture9.3
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Lecture9.4
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Debt Effect Analysis 2
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Lecture10.1
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Lecture10.2
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WACC Challenge 2
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Lecture11.1
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Lecture11.2
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Relative Valuation 4
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Lecture12.1
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Lecture12.2
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Lecture12.3
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Lecture12.4
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Forward Contract Valuation 3
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Lecture13.1
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Lecture13.2
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Lecture13.3
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Solution 2
The 5,000 impacts operating cash flows (Costs), so we would subtract it from OCF.
Solution 2
NCS = [Cashflow(-100000,0,.05)]
OCF = [Cashflow(45000,1,.05),Cashflow(45000,2,.05),Cashflow(45000,3,.05),Cashflow(45000,4,.05),Cashflow(45000,5,.05)]
print(NPV(NCS)+NPV(OCF))
Challenge
Now add in a 20% tax rate, what is the present value?
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Solution 3