Initial Cost

Cash flow in year 1

Cash flow growth year 2 to 7
Discount rate

1150
234
10%
15%

Time (year)
0
1
2
3
4
5
6
7

Cashflow
$ (1,150.00)
$
234.00
$
257.40
$
283.14
$
311.45
$
342.60
$
376.86
$
414.55

PVIF
15%
16%
17%
18%
19%
20%
21%

0.869565
0.743163
0.624371
0.515789
0.419049
0.334898
0.263331
NPV

IRR

PV(CF)
203.478261
191.290131
176.784279
160.644508
143.566063
126.20943
109.162727
$ 1,111.14
$1,251.46
$ 1,111.14
17.603%

Discount rate

Discount rate
0
3.00%
6.00%
9.00%
12.00%
15.00%
18.00%
21.00%
24.00%
27.00%
30.00%

$1,251.46
0
3.00%
6.00%
9.00%
12.00%
15.00%
18.00%
21.00%
24.00%
27.00%
30%

$1,251.46

Growth Rate
0%
5%

10%

15%

S
X
r
T
Sigma

50 Stock price
45 Strike price
4% RF (continuously compounded)
0.75 In year
30% Volatility (annualized)

d1
d2

0.650907
0.391099

N(d1)
N(d2)

0.742447
0.652138

Call

8.643434

Stock price 8.6434337

0.1
10
20
30
40
50
60
70
80
90
100

12
10
8
6
4
2
0
0

20

40

60

80

100

120

120

A= Row Vector ( 1 x 4 )
2
3

B= Column vector (4 x 1)
1
2
2
3
3
4
4
5

A*B
40
40
B*A
2
3
4
5

4
6
8
10

6
9
12
15

8
12
16
20

Number

Square
1
2
3
4

1
4
9
16
30

#NAME?

30

#NAME?

1
2
3
4
5
6
7
8
9
10

Aithematic Average
Geometric Average

26%
25.80%
20.50%
12.20%
32.20%
-2.70%
-0.50%
12.50%
21.10%
19.20%

16.630%
16.112%

#NAME?