Corporate Finance: Instructor\'s Manual Applied Corporate Finance

Aswath Damodaran 211

Which yields a NPV of..

Year

Annual

Cashflow

Terminal

Value

Present

Value

0 - $ 2 , 000 - $ 2 , 000

1 - $ 1 , 000 - $ 904

2 - $ 880 - $ 719

3 - $ 289 - $ 213

4 $ 324 $ 216

5 $ 443 $ 267

6 $ 486 $ 265

7 $ 517 $ 254

8 $ 571 $ 254

9 $ 631 $ 254

10 $ 663 $ 7 , 810 $ 3 , 076

$ 749

This is the net present value calculation using the cost of capital of 10.66%, the

theme park cost of capital adjusted for emerging market risk.