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    End of Year Expected Cash Flow (Monopoly)

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    Saadat Shaikh
    The document shows the expected cash flows in local currency and US dollars over 20 years for a monopoly investment. It calculates the net present value of the cash flows as -$669,703, assuming an exchange rate that remains constant at 1.90 local currency to $1 USD. The initial investment is -$26 million local currency in year 0. Positive cash flows then range from $3-6 million local currency or $1.5-3.1 million USD each year for 20 years.

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    End of Year Expected Cash Flow (Monopoly)

    Uploaded by

    Saadat Shaikh
    43 views4 pages
    The document shows the expected cash flows in local currency and US dollars over 20 years for a monopoly investment. It calculates the net present value of the cash flows as -$669,703, assuming an exchange rate that remains constant at 1.90 local currency to $1 USD. The initial investment is -$26 million local currency in year 0. Positive cash flows then range from $3-6 million local currency or $1.5-3.1 million USD each year for 20 years.

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    Q4

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    The document shows the expected cash flows in local currency and US dollars over 20 years for a monopoly investment. It calculates the net present value of the cash flows as -$669,703, assuming an exchange rate that remains constant at 1.90 local currency to $1 USD. The initial investment is -$26 million local currency in year 0. Positive cash flows then range from $3-6 million local currency or $1.5-3.1 million USD each year for 20 years.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    43 views4 pages

    End of Year Expected Cash Flow (Monopoly)

    Uploaded by

    Saadat Shaikh
    The document shows the expected cash flows in local currency and US dollars over 20 years for a monopoly investment. It calculates the net present value of the cash flows as -$669,703, assuming an exchange rate that remains constant at 1.90 local currency to $1 USD. The initial investment is -$26 million local currency in year 0. Positive cash flows then range from $3-6 million local currency or $1.5-3.1 million USD each year for 20 years.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    End of Expected Cash Flow

    Year (monopoly)
    0 (26,000,000.00)
    1 3,000,000.00
    2 3,000,000.00
    3 3,000,000.00
    4 4,000,000.00
    5 4,000,000.00
    6 4,000,000.00
    7 5,000,000.00
    8 5,000,000.00
    9 5,000,000.00
    10 6,000,000.00
    11 6,000,000.00
    12 6,000,000.00
    13 6,000,000.00
    14 6,000,000.00
    15 6,000,000.00
    16 6,000,000.00
    17 6,000,000.00
    18 6,000,000.00
    19 6,000,000.00
    Exchange rate (monopoly to USD dollars) Expected Cash Flow (USD Present Value of
    dollars) Cashflows at 16%
    1.90 (13,684,210.53) (13,684,210.53)
    1.90 1,578,947.37 1,361,161.52
    1.90 1,578,947.37 1,173,415.11
    1.90 1,578,947.37 1,011,564.75
    1.90 2,105,263.16 1,162,718.10
    1.90 2,105,263.16 1,002,343.19
    1.90 2,105,263.16 864,088.96
    1.90 2,631,578.95 931,130.34
    1.90 2,631,578.95 802,698.57
    1.90 2,631,578.95 691,981.53
    1.90 3,157,894.74 715,842.96
    1.90 3,157,894.74 617,106.00
    1.90 3,157,894.74 531,987.93
    1.90 3,157,894.74 458,610.28
    1.90 3,157,894.74 395,353.69
    1.90 3,157,894.74 340,822.15
    1.90 3,157,894.74 293,812.20
    1.90 3,157,894.74 253,286.38
    1.90 3,157,894.74 218,350.33
    1.90 3,157,894.74 188,233.04

    If the exchange rate stays at 1.90 per dollar


    Net Present Value (669,703)

    If monopoly appreciate over the years


    Net Present Value (NPV) (669,703.51)

    Initial investement
    First 3 years (3 * 1578947.37) 4,736,842.11
    End of Year Expected Cash Flow (monopoly)

    0 (26,000,000)
    1 3,000,000
    2 3,000,000
    3 3,000,000
    4 4,000,000
    5 4,000,000
    6 4,000,000
    7 5,000,000
    8 5,000,000
    9 5,000,000
    10 6,000,000
    11 6,000,000
    12 6,000,000
    13 6,000,000
    14 6,000,000
    15 6,000,000
    16 6,000,000
    17 6,000,000
    18 6,000,000
    19 6,000,000

    Initial investement
    1-3 years (3*3000000)
    4-6 years (3*4000000)
    7-9 years (3*5000000)
    10-19 years (10*6000000)
    Exchange rate
    (monopoly to USD Expected Cash Flow Present Value of
    dollars) (USD dollars) Cashflows at 16%
    1.90 (13,684,210.53) (13,684,210.53)
    1.90 1,578,947.37 1,361,161.52
    1.90 1,578,947.37 1,173,415.11
    1.90 1,578,947.37 1,011,564.75
    1.90 2,105,263.16 1,162,718.10
    1.90 2,105,263.16 1,002,343.19
    1.90 2,105,263.16 864,088.96
    1.90 2,631,578.95 931,130.34
    1.90 2,631,578.95 802,698.57
    1.90 2,631,578.95 691,981.53
    1.90 3,157,894.74 715,842.96
    1.90 3,157,894.74 617,106.00
    1.90 3,157,894.74 531,987.93
    1.90 3,157,894.74 458,610.28
    1.90 3,157,894.74 395,353.69
    1.90 3,157,894.74 340,822.15
    1.90 3,157,894.74 293,812.20
    1.90 3,157,894.74 253,286.38
    1.90 3,157,894.74 218,350.33
    1.90 3,157,894.74 188,233.04

    (26,000,000) 1.9 (13,684,210.53)


    9,000,000 1.9 4,736,842.11
    12,000,000 1.9 6,315,789.47
    15,000,000 1.9 7,894,736.84
    60,000,000 1.9 31,578,947.37
    70,000,000 1.9

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