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STUDENT OF
“UNIVERSITY OF CENTRAL PUNJAB”
“SHEIKHUPURA CAMPUS”
Group Members
Tayba Adeeb
Laraib Munir
S2F14MCOM0001
S2F14MCOM0033
Submitted to:
Prof. Alamdar Shah
Acknowledgement
 “Starting with the name of ALLAH the most
beneficent and the merciful whose blessings and
abundant and favors are unlimited.”
 As a matter a fact, people tend to forget those who
are behind there achievements and have stood for
them whenever they need assistant. Our gratitude
will be meaningless if we are not grateful to almighty
Allah for his kindness upon us. His benevolence and
blessings have made us capable. We are also very
thankful to our Sir. Alamdar Shah for their kind and
sympathetic behavior and for giving us this project
,so that we could learn a lot from this project.
What Is Project
 The project is about, we want to make
investment or put the plant in
international market…
 So for this, we want to see in which
sector our plant will make profit.
 Further more we found out NPV of three
companies in International market after
we would decide whether to put plant or
not..
Which Sector Chosen
 We have sector of Automotive
Industry….
 In the country of Japan…
Information Regarding
Automotive Industry In Japan
 The Japanese automotive industry is one of
the most prominent and largest industries in
the world.
 Japan has been in the top three of the
countries with most cars manufactured since
the 1960s, surpassing Germany.
 The automotive industry in Japan rapidly
increased from the 1970s to the 1990s (when
it was oriented both for domestic use and
worldwide export) and in the 1980s and 1990s,
overtook the U.S. as the production leader
with up to 13 million cars per year
manufactured and significant exports.
Information Regarding
Automotive Industry In Japan
 Japan is now currently
the third largest
automotive producer in
the world with an annual
production of 9.9 million
automobiles in
2012. Japanese
investments helped
grow the auto industry in
many countries
throughout the last few
decades.
 Cars designed in Japan
have won the European
Car of the
Year, International Car
of the Year, and World
Car of the Year awards
many times.
 Japanese
manufactured and
designed vehicles have
had worldwide
influence, and no longer
have the stigma they
had in the 1950s and
1960s when they first
emerged internationally
Companies
 We have selected 3 companies from
Japan which are ….
1) Toyota
2) Yamaha
3) Mazda
What is NPV
 Net Present Value
(NPV) is the
difference between
the present value of
cash inflows and the
present value of cash
outflows. NPV is used
in capital budgeting to
analyze the
profitability of a
projected investment
or project.
The following is the
formula for calculating
NPV:
 NPV = ∑ {Net Period
Cash Flow/(1+R)^T} -
Initial Investment
What is NPV
 A positive net present value indicates that the
projected earnings generated by a project or
investment exceeds the anticipated costs in.
 Generally, an investment with a positive NPV will be
a profitable one and one with a negative NPV will
result in a net loss.
 This concept is the basis for the Net Present Value
Rule, which dictates that the only investments that
should be made are those with positive NPV values.
Information:
 Amounts are in Million
and currency is yen.
 Cash flows are founded
from sales projection –
CGS projection.
 Require Return is
calculated as PAT/SHE
 Exchange rate is taken
from internet.
 When currencies are
same so we divide cash
flows and exchange
rate and if currencies
are different we multiply.
 In our projection
currencies were
different so we
multiplied. Cash flows
were yen and exchange
rate was Pak Rs.
Company Name Toyota Motor Corporation
President and Representative
Director
Akio Toyoda
Company Address
Head Office
1 Toyota-Cho, Toyota City, Aichi Prefecture 471-8571, Japan
Phone: (0565) 28-2121
Tokyo Head Office
1-4-18 Koraku, Bunkyo-ku, Tokyo 112-8701, Japan
Phone: (03) 3817-7111
Nagoya Office
4-7-1 Meieki, Nakamura-ku, Nagoya City, Aichi Prefecture 450-
8711, Japan
Phone: (052) 552-2111
Date founded August 28, 1937
Capital 397.05 billion yen (as of March 31, 2015)
Shareholders Shareholder Composition
Fiscal Year From April 1 to March 31 of the following year
Main Business Activities
Motor Vehicle Production and Sales
Business Sites Information on Business Sites
Number of employees (consolidated) 344,109 (as of March 31, 2015)
 Toyota is a company
born from the
passions of its
founders, who
wanted nothing less
than to establish a
globally competitive
automobile industry
in Japan.
 Kiichiro Toyoda’s dream of
mass producing a home-
grown passenger car and
sparking the development
of Japan’s automotive
industry had finally come
true.
 As long as innovation
continues in hybrid
technology, we can work
toward a “mobility society”
with more options for
customers
 We have sketched the outlines of the
kind of company that we want to be. We
have identified the values that we want
to cherish.
Slogan
 Drive Your Dreams. (2000-2011)
 Fun To Drive, Again. (2011-present)
 Big Challenge (1993-1996)
 Action Toyota (1997-1998)
 Fun To Drive (1984-1990)
Five Main Principles of
Toyoda
 Always be faithful to your duties, thereby
contributing to the company and to the overall
good.
 Always be studious and creative, striving to
stay ahead of the times.
 Always be practical and avoid frivolousness.
 Always strive to build a homelike atmosphere
at work that is warm and friendly.
 Always have respect for spiritual matters, and
remember to be grateful at all times.
Board of Directors
Chairman Tetsuro Toyoda
President Akira Onishi
Executive Vice
Presidents
Kazue Sasaki Hirotaka Morishita Shinya Furukawa
Senior Managing
Directors
Masaharu Suzuki Norio Sasaki Toshifumi Ogawa
Takuo Sasaki Toshifumi Onishi
Directors
Takaki Ogawa Kan Otsuka Taku Yamamoto
Keiichi Fukunaga Shuzo Sumi Kenichiro Yamanishi
Mitsuhisa Kato
Products
Calculation: Amount in Million
Particular Year 0 Year
2015
Year
2016
Year
2017
Year
2018
Year
2019
Year
2020
Initial
Investmen
t
(551308
)
- - - - - -
Cash Flow - 36965
76.68
5481147
.38
7730362
.13
1054597
7.64
5336946
.44
1839019
7.06
Exchange
Rate
- 0.93 0.93 0.93 0.93 0.93 0.93
Translated
Amount
- 34378
16.312
5097467
.063
7189236
.781
9807759
.205
4963360
.189
1710288
3.27
Require
Rate
- 5% 5% 5% 5% 5% 5%
Discount
Factor
- 2.0789 2.1828 2.2920 2.4066 2.5269 2.6532
Present
value
- 16536
70.842
2335288
.191
3136665
.262
4075359
.098
1964209
.185
6446134
.202
Present Value of Toyota
Formula:
Net present Value = Present Value – Initial
Investment
OR
NPV = P.V – I.I
= 19611326.78 – 551308
= 19060018.78
To our Stakeholder
 Continuously pursuing the spirit of “Revs
your Heart” to become an excellent
engineering, manufacturing and
marketing enterprise with a prominent
presence in the global market
Tracing the Unique Style of
Yamaha
 Yamaha Motor’s commitment to offering
new excitement and a more fulfilling life
for people all over the world is passed
down from generation to generation
Yamaha
 GROWTH STRATEGY #01
 Leverage technologies to help create a
“growing world of personal mobility
 GROWTH STRATEGY #02
 Promote measures aimed at further
growing the marine products business
 GROWTH STRATEGY #03
 Provide distinctive products that give
form to “the unique style of Yamaha
Type Public
Industry Automotive
Founded July 1, 1955
Headquarters Iwata, Shizuoka, Japan
Area served Global
Number of employees 52,662 (as of December 31, 2014)
Subsidiaries Minarelli
MBK
Slogan Revs Your Heart
Website Yamaha Motor Global
Key people Hiroyuki Yanagi (President &
Representative Director)
Yamaha
Corporate Slogan
Revs Your Heart
Board of Directors
Takuya Nakata President and Representative
Director
Masato Oike Director
Satoshi Yamahata Director
Hiroyuki Yanagi Outside Director
Yoshikatsu Ota Outside Director
Shigeru Nosaka Outside Director
Products
 Motorcycles
 Commuter Vehicles
 Scooters
 Recreational Vehicles
 Boats, Marine Engines
 Snowmobiles
 Small Tractors
Calculation: Amount in Million
Particular Year
0
Year
2015
Year
2016
Year
2017
Year
2018
Year
2019
Year
2020
Initial
Investment
(5059
81)
- - - - - -
Cash Flow - 47092.8
326
594734.
7598
751090.
5281
948552.
2279
1197926
.609
1512861
.514
Exchange
Rate
- 0.93 0.93 0.93 0.93 0.93 0.93
Translated
Amount
- 43796.3
3432
553103.
3266
698514.
1911
882153.
5719
1114071
.746
1406961
.208
Require
Rate
- 10% 10% 10% 10% 10% 10%
Discount
Factor
- 4.1772 4.5949 5.0544 5.5599 6.1159 6.7274
Present
value
- 10484.6
1513
120373.
311
138199.
2306
158663.
568
182159.
9023
209138.
9256
Present Value of Yamaha
Formula:
Net present Value = Present Value – Initial
Investment
OR
NPV = P.V – I.I
= 819019.5526 - 505981
= 313038.5526
Mazda Motor Corporation
Company name Mazda Motor Corporation
Founded January 30, 1920
Headquarters 3-1 Shinchi, Fuchu-cho, Aki-gun,
Hiroshima 730-8670 Japan
Representative Masamichi Kogai, Representative
Director; President and CEO
Main business Manufacture and sales of passenger cars
and commercial vehicles
Stock Information
Number of shareholders: 150,386
Mazda Motor Corporation
Employees
Unconsolidated Male: 19,407 Female:
1,888 Total: 21,295 (including dispatchees)
Consolidated: 44,035
Research and development sites
Head Office, Mazda R&D Center (Yokohama),
Mazda North American Operations (USA),
Mazda Motor Europe (Germany), China
Engineering Support Center (China)
Production sites
Japan: Hiroshima Plant (Head Office, Ujina),
Hofu Plant (Nishinoura, Nakanoseki), Miyoshi
Plant
Overseas: China, Thailand, Mexico, South
Africa, Ecuador, Taiwan, Vietnam*1,
Malaysia*2, Russia*2
Sales companies
Japan: 240, Overseas: 144
Principal products Four-wheeled vehicles, gasoline reciprocating
engines, diesel engines, automatic and
manual transmissions for vehicles
Directors of
Mazda Motor Corporation
1) Yuji Harada
2) Yuji Nakamine
3) Nobuhide Inamoto
4) Ichiro Sakai
5) Kazuaki Jono
Mission of
Mazda Motor Corporation
With passion, pride and speed, we actively
communicate with our customers to
deliver insightful automotive products
and services that exceed their
expectations.
Vision of
Mazda Motor Corporation
To create new value, excite and delight
our customers through the best
automotive products and services.
Core Value of Mazda Motor
Corporation
We value integrity, customer focus,
creativity, and efficient and nimble
actions and respect highly motivated
people and team spirit. We positively
support environmental matters, safety
and society. Guided by these values, we
provide superior rewards to all people
associated with Mazda.
To Shareholders and
Investors
I would like to express my gratitude to our
shareholders and other investors, and all of
the Mazda Group’s stakeholders, including
customers, suppliers, and local communities,
for your continued support and understanding.
We are making steady progress and have
achieved significant results this year under the
Structural Reform Plan that we announced in
February 2012. Going forward, we will
accelerate our activities toward the
achievement of our Mediumand Long-Term
Outlook.
Skyactiv Technology
 Mazda believes there is scope for cars
to evolve further, in a way that takes the
joy of driving to a new level and
combines it with outstanding
environmental and safety performance.
Mazda slogan
 The Japanese brand's latest marketing
motto takes a much more direct
approach than Zoom-Zoom by simply
saying Driving Matters.
 The two-word phrase is meant to make
customers believe that a good time
behind the wheel can improve their
lives.
Products of
Mazda Motor Corporation
Calculation: Amount in
MillionParticular Year
0
Year
2015
Year
2016
Year
2017
Year
2018
Year
2019
Year
2020
Initial
Investmen
t
(2426
49)
- - - - - -
Cash Flow - 259908
1.44
299414
1.819
344925
1.1375
397353
7.584
392622
12.701
452299
7.031
Exchange
Rate
- 0.93 0.93 0.93 0.93 0.93 0.93
Translated
Amount
- 241714
5.739
278455
1.892
320780
3.557
369538
9.953
365138
57.81
420638
7.239
Require
Rate
- 2.2% 2.2% 2.2% 2.2% 2.2% 2.2%
Discount
Factor
- 1.3860 1.4164 1.4476 1.4795 1.5120 1.5453
Present
value
- 174397
2.392
196593
6.1
221594
6.088
249772
8.931
241493
76.86
272205
2.183
Present Value of Mazda
Formula:
Net present Value = Present Value – Initial
Investment
OR
NPV = P.V – I.I
= 35295012.55 - 242649
= 35052363.55
Conclusion
Particulars Company Net Present Value
1 Toyota 19060018.78
2 Yamaha 313038.5526
3 Mazda 35052363.55
Conclusion
 As from the previous slide table the
calculation of NPV is positive so it’s
mean we can invest or introduce the
new business in Japan in automotive
industry .We will earn profit in future.
NPV Analysis of Automotive Companies in Japan

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NPV Analysis of Automotive Companies in Japan

  • 1.
  • 2. STUDENT OF “UNIVERSITY OF CENTRAL PUNJAB” “SHEIKHUPURA CAMPUS”
  • 3. Group Members Tayba Adeeb Laraib Munir S2F14MCOM0001 S2F14MCOM0033
  • 5. Acknowledgement  “Starting with the name of ALLAH the most beneficent and the merciful whose blessings and abundant and favors are unlimited.”  As a matter a fact, people tend to forget those who are behind there achievements and have stood for them whenever they need assistant. Our gratitude will be meaningless if we are not grateful to almighty Allah for his kindness upon us. His benevolence and blessings have made us capable. We are also very thankful to our Sir. Alamdar Shah for their kind and sympathetic behavior and for giving us this project ,so that we could learn a lot from this project.
  • 6. What Is Project  The project is about, we want to make investment or put the plant in international market…  So for this, we want to see in which sector our plant will make profit.  Further more we found out NPV of three companies in International market after we would decide whether to put plant or not..
  • 7. Which Sector Chosen  We have sector of Automotive Industry….  In the country of Japan…
  • 8. Information Regarding Automotive Industry In Japan  The Japanese automotive industry is one of the most prominent and largest industries in the world.  Japan has been in the top three of the countries with most cars manufactured since the 1960s, surpassing Germany.  The automotive industry in Japan rapidly increased from the 1970s to the 1990s (when it was oriented both for domestic use and worldwide export) and in the 1980s and 1990s, overtook the U.S. as the production leader with up to 13 million cars per year manufactured and significant exports.
  • 9. Information Regarding Automotive Industry In Japan  Japan is now currently the third largest automotive producer in the world with an annual production of 9.9 million automobiles in 2012. Japanese investments helped grow the auto industry in many countries throughout the last few decades.  Cars designed in Japan have won the European Car of the Year, International Car of the Year, and World Car of the Year awards many times.  Japanese manufactured and designed vehicles have had worldwide influence, and no longer have the stigma they had in the 1950s and 1960s when they first emerged internationally
  • 10. Companies  We have selected 3 companies from Japan which are …. 1) Toyota 2) Yamaha 3) Mazda
  • 11. What is NPV  Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of a projected investment or project. The following is the formula for calculating NPV:  NPV = ∑ {Net Period Cash Flow/(1+R)^T} - Initial Investment
  • 12. What is NPV  A positive net present value indicates that the projected earnings generated by a project or investment exceeds the anticipated costs in.  Generally, an investment with a positive NPV will be a profitable one and one with a negative NPV will result in a net loss.  This concept is the basis for the Net Present Value Rule, which dictates that the only investments that should be made are those with positive NPV values.
  • 13. Information:  Amounts are in Million and currency is yen.  Cash flows are founded from sales projection – CGS projection.  Require Return is calculated as PAT/SHE  Exchange rate is taken from internet.  When currencies are same so we divide cash flows and exchange rate and if currencies are different we multiply.  In our projection currencies were different so we multiplied. Cash flows were yen and exchange rate was Pak Rs.
  • 14.
  • 15. Company Name Toyota Motor Corporation President and Representative Director Akio Toyoda Company Address Head Office 1 Toyota-Cho, Toyota City, Aichi Prefecture 471-8571, Japan Phone: (0565) 28-2121 Tokyo Head Office 1-4-18 Koraku, Bunkyo-ku, Tokyo 112-8701, Japan Phone: (03) 3817-7111 Nagoya Office 4-7-1 Meieki, Nakamura-ku, Nagoya City, Aichi Prefecture 450- 8711, Japan Phone: (052) 552-2111 Date founded August 28, 1937 Capital 397.05 billion yen (as of March 31, 2015) Shareholders Shareholder Composition Fiscal Year From April 1 to March 31 of the following year Main Business Activities Motor Vehicle Production and Sales Business Sites Information on Business Sites Number of employees (consolidated) 344,109 (as of March 31, 2015)
  • 16.  Toyota is a company born from the passions of its founders, who wanted nothing less than to establish a globally competitive automobile industry in Japan.  Kiichiro Toyoda’s dream of mass producing a home- grown passenger car and sparking the development of Japan’s automotive industry had finally come true.  As long as innovation continues in hybrid technology, we can work toward a “mobility society” with more options for customers
  • 17.  We have sketched the outlines of the kind of company that we want to be. We have identified the values that we want to cherish.
  • 18. Slogan  Drive Your Dreams. (2000-2011)  Fun To Drive, Again. (2011-present)  Big Challenge (1993-1996)  Action Toyota (1997-1998)  Fun To Drive (1984-1990)
  • 19. Five Main Principles of Toyoda  Always be faithful to your duties, thereby contributing to the company and to the overall good.  Always be studious and creative, striving to stay ahead of the times.  Always be practical and avoid frivolousness.  Always strive to build a homelike atmosphere at work that is warm and friendly.  Always have respect for spiritual matters, and remember to be grateful at all times.
  • 20. Board of Directors Chairman Tetsuro Toyoda President Akira Onishi Executive Vice Presidents Kazue Sasaki Hirotaka Morishita Shinya Furukawa Senior Managing Directors Masaharu Suzuki Norio Sasaki Toshifumi Ogawa Takuo Sasaki Toshifumi Onishi Directors Takaki Ogawa Kan Otsuka Taku Yamamoto Keiichi Fukunaga Shuzo Sumi Kenichiro Yamanishi Mitsuhisa Kato
  • 22. Calculation: Amount in Million Particular Year 0 Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 Initial Investmen t (551308 ) - - - - - - Cash Flow - 36965 76.68 5481147 .38 7730362 .13 1054597 7.64 5336946 .44 1839019 7.06 Exchange Rate - 0.93 0.93 0.93 0.93 0.93 0.93 Translated Amount - 34378 16.312 5097467 .063 7189236 .781 9807759 .205 4963360 .189 1710288 3.27 Require Rate - 5% 5% 5% 5% 5% 5% Discount Factor - 2.0789 2.1828 2.2920 2.4066 2.5269 2.6532 Present value - 16536 70.842 2335288 .191 3136665 .262 4075359 .098 1964209 .185 6446134 .202
  • 23. Present Value of Toyota Formula: Net present Value = Present Value – Initial Investment OR NPV = P.V – I.I = 19611326.78 – 551308 = 19060018.78
  • 24.
  • 25. To our Stakeholder  Continuously pursuing the spirit of “Revs your Heart” to become an excellent engineering, manufacturing and marketing enterprise with a prominent presence in the global market
  • 26. Tracing the Unique Style of Yamaha  Yamaha Motor’s commitment to offering new excitement and a more fulfilling life for people all over the world is passed down from generation to generation
  • 27. Yamaha  GROWTH STRATEGY #01  Leverage technologies to help create a “growing world of personal mobility  GROWTH STRATEGY #02  Promote measures aimed at further growing the marine products business  GROWTH STRATEGY #03  Provide distinctive products that give form to “the unique style of Yamaha
  • 28. Type Public Industry Automotive Founded July 1, 1955 Headquarters Iwata, Shizuoka, Japan Area served Global Number of employees 52,662 (as of December 31, 2014) Subsidiaries Minarelli MBK Slogan Revs Your Heart Website Yamaha Motor Global Key people Hiroyuki Yanagi (President & Representative Director) Yamaha
  • 30. Board of Directors Takuya Nakata President and Representative Director Masato Oike Director Satoshi Yamahata Director Hiroyuki Yanagi Outside Director Yoshikatsu Ota Outside Director Shigeru Nosaka Outside Director
  • 31. Products  Motorcycles  Commuter Vehicles  Scooters  Recreational Vehicles  Boats, Marine Engines  Snowmobiles  Small Tractors
  • 32. Calculation: Amount in Million Particular Year 0 Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 Initial Investment (5059 81) - - - - - - Cash Flow - 47092.8 326 594734. 7598 751090. 5281 948552. 2279 1197926 .609 1512861 .514 Exchange Rate - 0.93 0.93 0.93 0.93 0.93 0.93 Translated Amount - 43796.3 3432 553103. 3266 698514. 1911 882153. 5719 1114071 .746 1406961 .208 Require Rate - 10% 10% 10% 10% 10% 10% Discount Factor - 4.1772 4.5949 5.0544 5.5599 6.1159 6.7274 Present value - 10484.6 1513 120373. 311 138199. 2306 158663. 568 182159. 9023 209138. 9256
  • 33. Present Value of Yamaha Formula: Net present Value = Present Value – Initial Investment OR NPV = P.V – I.I = 819019.5526 - 505981 = 313038.5526
  • 34.
  • 35. Mazda Motor Corporation Company name Mazda Motor Corporation Founded January 30, 1920 Headquarters 3-1 Shinchi, Fuchu-cho, Aki-gun, Hiroshima 730-8670 Japan Representative Masamichi Kogai, Representative Director; President and CEO Main business Manufacture and sales of passenger cars and commercial vehicles Stock Information Number of shareholders: 150,386
  • 36. Mazda Motor Corporation Employees Unconsolidated Male: 19,407 Female: 1,888 Total: 21,295 (including dispatchees) Consolidated: 44,035 Research and development sites Head Office, Mazda R&D Center (Yokohama), Mazda North American Operations (USA), Mazda Motor Europe (Germany), China Engineering Support Center (China) Production sites Japan: Hiroshima Plant (Head Office, Ujina), Hofu Plant (Nishinoura, Nakanoseki), Miyoshi Plant Overseas: China, Thailand, Mexico, South Africa, Ecuador, Taiwan, Vietnam*1, Malaysia*2, Russia*2 Sales companies Japan: 240, Overseas: 144 Principal products Four-wheeled vehicles, gasoline reciprocating engines, diesel engines, automatic and manual transmissions for vehicles
  • 37. Directors of Mazda Motor Corporation 1) Yuji Harada 2) Yuji Nakamine 3) Nobuhide Inamoto 4) Ichiro Sakai 5) Kazuaki Jono
  • 38. Mission of Mazda Motor Corporation With passion, pride and speed, we actively communicate with our customers to deliver insightful automotive products and services that exceed their expectations.
  • 39. Vision of Mazda Motor Corporation To create new value, excite and delight our customers through the best automotive products and services.
  • 40. Core Value of Mazda Motor Corporation We value integrity, customer focus, creativity, and efficient and nimble actions and respect highly motivated people and team spirit. We positively support environmental matters, safety and society. Guided by these values, we provide superior rewards to all people associated with Mazda.
  • 41. To Shareholders and Investors I would like to express my gratitude to our shareholders and other investors, and all of the Mazda Group’s stakeholders, including customers, suppliers, and local communities, for your continued support and understanding. We are making steady progress and have achieved significant results this year under the Structural Reform Plan that we announced in February 2012. Going forward, we will accelerate our activities toward the achievement of our Mediumand Long-Term Outlook.
  • 42. Skyactiv Technology  Mazda believes there is scope for cars to evolve further, in a way that takes the joy of driving to a new level and combines it with outstanding environmental and safety performance.
  • 43. Mazda slogan  The Japanese brand's latest marketing motto takes a much more direct approach than Zoom-Zoom by simply saying Driving Matters.  The two-word phrase is meant to make customers believe that a good time behind the wheel can improve their lives.
  • 44. Products of Mazda Motor Corporation
  • 45. Calculation: Amount in MillionParticular Year 0 Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 Initial Investmen t (2426 49) - - - - - - Cash Flow - 259908 1.44 299414 1.819 344925 1.1375 397353 7.584 392622 12.701 452299 7.031 Exchange Rate - 0.93 0.93 0.93 0.93 0.93 0.93 Translated Amount - 241714 5.739 278455 1.892 320780 3.557 369538 9.953 365138 57.81 420638 7.239 Require Rate - 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% Discount Factor - 1.3860 1.4164 1.4476 1.4795 1.5120 1.5453 Present value - 174397 2.392 196593 6.1 221594 6.088 249772 8.931 241493 76.86 272205 2.183
  • 46. Present Value of Mazda Formula: Net present Value = Present Value – Initial Investment OR NPV = P.V – I.I = 35295012.55 - 242649 = 35052363.55
  • 47. Conclusion Particulars Company Net Present Value 1 Toyota 19060018.78 2 Yamaha 313038.5526 3 Mazda 35052363.55
  • 48. Conclusion  As from the previous slide table the calculation of NPV is positive so it’s mean we can invest or introduce the new business in Japan in automotive industry .We will earn profit in future.