Alternative B Differential (with Changing Discount Rates)
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 (X $1M)
Discount rate | 7.43 percent (geometric mean of positive rates)
Discount method| Middle-of-year
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Project B/L Recurring Alternative B Net Cash Discount Discounted
Year (-) (+) Flow Rate Factor Cash Flow
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1 $2,923.60 $2,942.70 $19.10 10.00 0.9545 $18.23
2 $2,870.40 $2,884.80 $14.40 7.00 0.9040 $13.02
3 $2,821.10 $2,826.90 $5.80 7.00 0.8449 $4.90
4 $2,783.40 $2,768.90 -$14.50 7.00 0.7896 -$11.45
5 $2,744.10 $2,711.00 -$33.10 7.00 0.7379 -$24.43
6 $2,703.30 $2,653.10 -$50.20 7.00 0.6897 -$34.62
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Tot $16,845.90 $16,787.40 -$58.50 4.9206 -$34.35
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Uniform annual inflow without terminal value | -$6.98
Internal rate of return (IRR)(outflow) | 27.97 percent
IRR--discount rate differential | 20.54 percent
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Copyright © 1991-1997, Ray Martin