RE:RE:Net present valueYou need to see more specifics. You are using billion dollar market absolutely when it could be an approximation. Maybe it is a $1.15 billion market or something. The market number could be in US dollars when the $100 million net present value could be in Canadian dollars. You assume no inflation over 15 years for the revenue. Perhaps CZO believes it could get a premium for its gold standard product.
lscfa wrote: Not buying the $100 million NPV. If the BGY mkt is $1 billion/yr, a 3% share = $30 million/yr. But that is revenue. Cash flow would be much smaller.
| | | PV @ 20% |
| 0 | (40,000,000) | (40,000,000) |
| 1 | 30,000,000 | 25,000,000 |
| 2 | 30,000,000 | 20,833,333 |
| 3 | 30,000,000 | 17,361,111 |
| 4 | 30,000,000 | 14,467,593 |
| 5 | 30,000,000 | 12,056,327 |
| 6 | 30,000,000 | 10,046,939 |
| 7 | 30,000,000 | 8,372,449 |
| 8 | 30,000,000 | 6,977,041 |
| 9 | 30,000,000 | 5,814,201 |
| 10 | 30,000,000 | 4,845,167 |
| 11 | 30,000,000 | 4,037,640 |
| 12 | 30,000,000 | 3,364,700 |
| 13 | 30,000,000 | 2,803,916 |
| 14 | 30,000,000 | 2,336,597 |
| 15 | 30,000,000 | 1,947,164 |
| | | |
| | Sum = | 100,264,179 |