Sunday, December 11, 2011

How to Calculate Net Present Value for Multi Projects?

How to calculate accumulative Net Present Value for multi projects? Supposed there are 1 projects rasied on Year 1 and there are expansion on Y2 and Y3. Y1 funded by 100% equity, Y2 expansion funded by 40% debt and also for Y3 expansion.How to Calculate Net Present Value for Multi Projects?
I am not sure if I have understood your question correctly but if I have. You just model up all of the case flows. So you have the cost of expansion in year 2, and the cash inflow from the debt and equity, then again in year 3 and discount all those cash flows.

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