Final answer:
Calculating NPV requires discounting future cash flows at a particular rate to find their present values, summing these values, and dividing by the number of shares if necessary. Expected profits and the discount rate influence the NPV calculation outcome, which is based on projections and contains inherent uncertainties.
Step-by-step explanation:
To calculate the Net Present Value (NPV) of a project, you need to discount the future cash flows to their present value at a specific discount rate which, in this case, is 15%. The present value (PV) is calculated using the formula PV = Future Value / (1 + r)^n, where r is the discount rate, and n is the number of time periods. You must perform a different present value calculation for each time period where you receive different cash flows before adding them together to obtain the total present value.
Once you've calculated the present value of all future cash flows, you sum them up to find the total present value of profits. Then you would divide this by the number of shares to find the price per share. For example, if the PDV of total profits is 51.3 million and there are 200 shares, you would divide 51.3 million by 200, resulting in a price per share of approximately $256,500.
However, expected profits are estimates and the chosen discount rate can significantly affect the NPV calculation. It is important to remember that these figures are part of a projection and subject to uncertainties in the real world.