acc240 IRR - Equip. Repairs 7 (600,000) 0.452 (271,200)...

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Ch. 12-A 14% Amount of Present Value Present Value of Item Year(s) Cash Flow Factor Cash Flows 1 Now (20,000,000) 1.000 (20,000,000) Working Capital Required Now (400,000) 1.000 (400,000) Equip. Repairs 4 (500,000) 0.592 (296,000) Equip. Repairs 7 (600,000) 0.400 (240,000) Salvage value 10 12,000,000 0.270 3,240,000 Net annual Cash Receipts 1-10 3,200,000 5.216 16,691,200 Working Capital Released 10 400,000 0.270 108,000 Net Present Value (896,800) 12% Amount of Present Value Present Value of 2 Item Year(s) Cash Flow Factor Cash Flows Now (20,000,000) 1.000 (20,000,000) Working Capital Required Now (400,000) 1.000 (400,000) Equip. Repairs 4 (500,000) 0.636 (318,000)
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Unformatted text preview: Equip. Repairs 7 (600,000) 0.452 (271,200) Salvage value 10 12,000,000 0.322 3,864,000 Net annual Cash Receipts 1-10 3,200,000 5.650 18,080,000 Working Capital Released 10 400,000 0.322 128,800 Net Present Value 1,083,600 3 Year Description Cash Flow Cost of Equip. & Working Capital (20,400,000) 1 Cash Receipts 3,200,000 2 Cash Receipts 3,200,000 3 Cash Receipts 3,200,000 4 Cash Receipts (Net of Repair) 2,700,000 5 Cash Receipts 3,200,000 6 Cash Receipts 3,200,000 7 Cash Receipts (Net of Repair) 2,600,000 8 Cash Receipts 3,200,000 9 Cash Receipts 3,200,000 10 Receipts, Salvage, Working Cap 15,600,000 IRR 13.06%...
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This homework help was uploaded on 04/07/2008 for the course ACC 240 taught by Professor Vawter during the Spring '08 term at Glendale Community College.

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