4.5 5 5.5 6 6.5

27529829.9318438

28729364.1966376

29928898.4614314

31128432.7262252

32327966.991019

Graph between ppu and npv

Price per unit

NPV

2 2.5 3 3.5 3.6 3.61 3.65 4 4.5 5 5.5 6 6.5 7 7.5 8 8.2 8.4 8.6 8.8 9

-15000000

-10000000

-5000000

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

Effect of PPU on NPV

Price per unit

NPV

-2000000

0

2000000

4000000

6000000

8000000

10000000

Effect of Cost per unit on NPV

Cost per unit

NPV

Initital Cost $ 10,000,000.00 Fixed Cost $ 100,000.00 Increase in Fixed Cost 5%Sales 100000Increase in Sales 10.0%Cost per unit $ 3.00 Increase in Cost per Unit 6.50%Overhauling Cost $ 300,000.00 Increase In overhauling Cost 2%Number of Years for overhauling 5Price per Unit $ 7.50 Increase in PPU 10%Revenues $ 750,000.00 Interest Rate 12%Risk Premium 3%Cost of Capital 15%Number of years 30

PPU NPV2 -9655732.276764

2.5 -6656896.6147793 -3658060.952795

3.5 -659225.29081043.6 -59458.1584135

3.61 518.55482618323.65 240425.40778494

4 2339610.37117414.5 5338446.03315865 8337281.6951431

5.5 11336117.3571286 14334953.019112

6.5 17333788.6810977 20332624.343081

7.5 23331460.0050668 26330295.66705

8.2 27529829.9318448.4 28729364.1966388.6 29928898.4614328.8 31128432.7262259 32327966.991019

Years Fixed Cost Sales1 $ 100,000.00 1000002 $ 105,000.00 1100003 $ 110,250.00 1210004 $ 115,762.50 1331005 $ 121,550.63 1464106 $ 127,628.16 1610517 $ 134,009.56 177156.18 $ 140,710.04 194871.719 $ 147,745.54 214358.88110 $ 155,132.82 235794.769111 $ 162,889.46 259374.24612 $ 171,033.94 285311.670613 $ 179,585.63 313842.837714 $ 188,564.91 345227.121415 $ 197,993.16 379749.833616 $ 207,892.82 417724.816917 $ 218,287.46 459497.298618 $ 229,201.83 505447.028519 $ 240,661.92 555991.731320 $ 252,695.02 611590.904521 $ 265,329.77 672749.994922 $ 278,596.26 740024.994423 $ 292,526.07 814027.493924 $ 307,152.38 895430.243325 $ 322,509.99 984973.267626 $ 338,635.49 1083470.59427 $ 355,567.27 1191817.65428 $ 373,345.63 1310999.41929 $ 392,012.91 1442099.36130 $ 411,613.56 1586309.297

Cost per unit Variable Cost OVL Cost Total Cost PPU $ 3.00 $ 300,000.00 0 $ 400,000.00 $ 7.50

3.195 $ 351,450.00 0 $ 456,450.00 8.253.402675 $ 411,723.68 0 $ 521,973.68 9.075

3.623848875 $ 482,334.29 0 $ 598,096.79 9.98253.859399052 $ 565,054.62 331224.241 $ 1,017,829.48 10.980754.11025999 $ 661,961.48 0 $ 789,589.64 12.0788254.37742689 $ 775,487.88 0 $ 909,497.44 13.28670754.661959637 $ 908,484.05 0 $ 1,049,194.09 14.615378254.964987014 $ 1,064,289.06 0 $ 1,212,034.60 16.076916085.28771117 $ 1,246,814.63 365698.326 $ 1,767,645.78 17.684607685.631412396 $ 1,460,643.34 0 $ 1,623,532.81 19.453068455.997454202 $ 1,711,143.68 0 $ 1,882,177.61 21.39837536.387288725 $ 2,004,604.82 0 $ 2,184,190.45 23.538212836.802462492 $ 2,348,394.54 0 $ 2,536,959.46 25.892034117.244622554 $ 2,751,144.21 403760.501 $ 3,352,897.87 28.481237527.71552302 $ 3,222,965.44 0 $ 3,430,858.26 31.329361278.217032016 $ 3,775,704.01 0 $ 3,993,991.47 34.46229748.751139097 $ 4,423,237.25 0 $ 4,652,439.08 37.908527149.319963138 $ 5,181,822.44 0 $ 5,422,484.36 41.699379859.925760742 $ 6,070,504.99 445784.219 $ 6,768,984.23 45.8693178410.57093519 $ 7,111,596.60 0 $ 7,376,926.37 50.4562496211.25804598 $ 8,331,235.41 0 $ 8,609,831.67 55.5018745811.98981897 $ 9,760,042.29 0 $ 10,052,568.36 61.0520620412.7691572 $ 11,433,889.54 0 $ 11,741,041.91 67.1572682413.59915242 $ 13,394,801.59 492181.798 $ 14,209,493.39 73.8729950714.48309732 $ 15,692,010.07 0 $ 16,030,645.56 81.2602945815.42449865 $ 18,383,189.79 0 $ 18,738,757.06 89.3863240316.42709106 $ 21,535,906.84 0 $ 21,909,252.47 98.3249564417.49485198 $ 25,229,314.86 0 $ 25,621,327.78 108.157452118.63201736 $ 29,556,142.36 0 $ 29,967,755.92 118.9731973

Total Revenues Profit PV NPV $ 750,000.00 $ 350,000.00 304347.8261 $ 23,331,460.01 $ 907,500.00 $ 451,050.00 341058.6011 $ 1,098,075.00 $ 576,101.33 378795.9727 $ 1,328,670.75 $ 730,573.96 417708.0355 $ 1,607,691.61 $ 589,862.13 293265.7263 $ 1,945,306.85 $ 1,155,717.21 499648.4417 $ 2,353,821.28 $ 1,444,323.84 542974.8301 $ 2,848,123.75 $ 1,798,929.66 588073.2979 $ 3,446,229.74 $ 2,234,195.13 635097.698 $ 4,169,937.99 $ 2,402,292.20 593809.8923 $ 5,045,624.96 $ 3,422,092.16 735555.5163 $ 6,105,206.20 $ 4,223,028.59 789314.239 $ 7,387,299.51 $ 5,203,109.06 845650.6833 $ 8,938,632.40 $ 6,401,672.94 904739.8461 $ 10,815,745.21 $ 7,462,847.34 917142.7817 $ 13,087,051.70 $ 9,656,193.44 1031906.889 $ 15,835,332.56 $ 11,841,341.09 1100367.121 $ 19,160,752.40 $ 14,508,313.31 1172345.982 $ 23,184,510.40 $ 17,762,026.03 1248054.457 $ 28,053,257.58 $ 21,284,273.36 1300475.039 $ 33,944,441.68 $ 26,567,515.31 1411550.084 $ 41,072,774.43 $ 32,462,942.76 1499807.076 $ 49,698,057.06 $ 39,645,488.70 1592734.721 $ 60,134,649.04 $ 48,393,607.13 1690595.957 $ 72,762,925.34 $ 58,553,431.95 1778714.913 $ 88,043,139.66 $ 72,012,494.10 1902234.279

### $ 87,793,441.93 2016602.895### ### 2137089.789### ### 2264028.435### ### 2397768.982

Cost per unit NPV8 9047847.9392

8.2 8356550.03018.4 7665252.1218.6 6973954.21198.8 6282656.30289 5591358.3937

9.2 4900060.48459.4 4208762.57549.6 3517464.66639.8 2826166.757210 2134868.8481

10.2 1443570.93910.4 752273.0298710.6 60975.120755

10.61 26410.22529910.612 19497.24620810.614 12584.26711710.616 5671.288025810.617 2214.7984802

10.6176 140.9047529110.6177 -204.744201710.6178 -550.393156210.618 -1241.691065

10.6184 -2624.28688410.6188 -4006.882702

10.62 -8154.67015610.64 -77284.4610710.68 -215544.042910.72 -353803.624710.8 -630322.7884