FIN 515 midterm - 3 rate nper pv fv 0.1 5-10000 $16,105.10 4 pv nper r pmt-18000 48 0.0033333333 $406.42 5 pv pmt rate nper fv 10000 500 5 10 $22,577.89

FIN 515 midterm - 3 rate nper pv fv 0.1 5-10000 $16,105.10...

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3 rate 0.1 nper 5 pv -10000 fv $16,105.10 4 pv -18000 nper 48 r 0.0033333333 pmt $406.42 Revised answer 5 pv 10000 10000 pmt 500 500 rate 5% 5% nper 10 10 fv $22,577.89 $94,111.23 6 n 5 r 5% loan amount 100000 baloon amount -20000 monthly payment ($1,593.03) pmt=(5%/12,5*12,100000,-20000) 7 PV -40000 1 12000 2 12000 3 12000 4 12000 5 12000 6 12000 7 12000 nper 7 rate 10% npv $18,421.03 8 pv -40000.00 pmt 12000.00 nper 7.00 rate 0.10 period 3.33 9 -95000 20000 20000 20000 20000 20000 20000 20000 20000 20000 IRR 15% 10 years cash flows pv cash flows 0 95,000.00 $95,000.00 1 20000 $18,181.82 $76,818.18 2 20000 $16,528.93 $60,289.26 3 20000 $15,026.30 $45,262.96 4 20000 $13,660.27 $31,602.69 5 20000 $12,418.43 $19,184.26 6 20000 $11,289.48 $7,894.79 7 20000 $10,263.16 ($2,368.38) 8 20000 $9,330.15 ($11,698.52) 9 20000 $8,481.95 ($20,180.48) 0.769235225 discounted payback period =6.76 11 A B C 0 -500 -500 -600 1 200 -200 100 2 200 200 100 3 200 200 100
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4 200 200 100 5 200 200 100 6 200 200 100 7 -300 -300 100 NPV $186.58 ($170.57) ($143.62) IRR 28% 0% 4% Based on the calculations, the best project to pursue is project A. Project A has a positive NPV of 166.59 and 28% of IRR. The cost of capital of 12% and IRR is 28%
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  • Spring '10
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  • Net Present Value, Fiance, $1,593.03, $2,368.38, $45,262.96, $60,289.26, $76,818.18

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