Dr. Klaus Griesar - Technology Entrepreneurship

Net Present Value (NPV) – Example
The project´s NPV is calculated by discounting the project´s net cash flows to the moment of decision
(in the example: 2004/today).
Discounted to 2004:
Thousand €
2004
2005
2006
2007
2008
Total NPV
2004
Phase II
-100.00
-90.91
82.64
74.13
68.30
35.17
2005
Phase III
-100 -100
( 1
−100
+ 0.
1
1
)
2006
Sales year 1
Griesar – Management von F&E
2007
Sales year 2
2008
Sales year 3
100 100 100
100
( 1+
0. 1
2
)
100
( 1+
0. 1 .
3
)
Overhead value = 100 !!!!!!
[(-100) + (-100) + 100 +100 +100]
( 1
100
0.
1
+
4
)
Discount rate = 10%
t
40