Alternative A Differential (Using a 7 percent Discount Rate)
D i s c o u n t e d C a s h F l o w
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Date prepared | 08-05-1993
Description | CIM FEA Differential
Discount rate | 7.00 percent
Discount method| Middle-of-year
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Project B/L Recurring Alternative A Net Cash Discount Discounted
Year (-) (+) Flow Factor Cash Flow
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1 $2,923.60 $2,942.70 $19.10 0.9673 $18.48
2 $2,870.40 $2,846.90 -$23.50 0.9040 -$21.24
3 $2,821.10 $2,751.10 -$70.00 0.8449 -$59.14
4 $2,783.40 $2,655.20 -$128.20 0.7896 -$101.23
5 $2,744.10 $2,559.40 -$184.70 0.7379 -$136.30
6 $2,703.30 $2,463.60 -$239.70 0.6897 -$165.31
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Total $16,845.90 $16,218.90 -$627.00 4.9334 -$464.74
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Uniform annual inflow without terminal value | -$94.20
Internal rate of return (IRR)(outflow) | 231.53 percent
IRR--discount rate differential | 224.53 percent
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Copyright © 1991-1997, Ray Martin