Q1 Profit margin
Existing price 30000 8000
New price 28000 6000
Existing sales 40000 vehicles
Increased sales 55000 vehicles
Net increase in sales 15000 vehicles
Net decrease in profit 2000
Benefit for increased sales 90000000 330000000
Cost of increased sales 80000000 320000000
Net present value 10000000 10000000
Q2
Payment/ benefit today 2000000 Czech
Cost today 3000000 Thai
NPV
Q3
Current price 3.75 per bushel
1 bushel of corn to
Cost conversion per bushel 1.6
Total cost incurred 5.35
cost per gallon of ethanol > 1.78333333333333
Q4
Alt 1 5000 bonus
Alt 2 6300 shares price, 100 shares, 63 per share
Q6
Risk free interest rate 4%
200 today
200 Fv
FV Both are same
Present value 200 today is more than 192.31
Q7
Cost today 1000000 Rs
Future value 114000000 Yen
Value Japan today 1016042.78074866
Value today US 996503.496503497
NPV of Japan 16042.7807486631
Q8
Cost today 160000
Future value 170000
Interest rate 6.25%
Q9
One year to construct
Cost today 10 mn
Cost after one year 5mn
