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25/07/11
21:56
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nectar38;
NPV calc on 50mtpa; Here just a quick version (not NPV) but close enough to give you an answer you are looking for.
2014;
50mt x 100 @ $21 cost = $3.95b
50mt x 120 @ $21 cost = $4.95b
NPV of that 2014 year ALONE at 10% =
@$100/t = $2.967b
@120/t = $3.719b
Each cash flow (here we use profit (inflow - outflow) is discounted to account for the 10%
Here is a 5 year NPV calculation
First 5 years @ $100/t with 10% discount rate and a $5bil estimate of initial outlay (CAPEX)
$7.375b
Same calculation @ $120/t for 5 years at 10% discount with a CAPEX of $5b =
$10.507b
We'd then include stage 2 CAPEX and future cashflows - Which would only add to the total NPV values...
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