350 - Cap Inv Net income Y1 Y2 Y3 Y4 Y5 Brown Red Yellow...

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Brown Red Yellow Brown Red Cap Inv 160000 200000 250000 Cash flow Net income Y0 -160000 -200000 Y1 25000 20000 31000 Y1 57000 60000 Y2 16000 20000 24000 Y2 48000 60000 Y3 13000 20000 23000 Y3 45000 60000 Y4 10000 20000 22000 Y4 42000 60000 Y5 8000 20000 20000 Y5 40000 60000 Part A) IRR = 14.82% 15.24% NPV = $10,577.11 $16,286.57 Cummulative Cash flow Brown Red Yellow Y1 57000 60000 81000 Part D) 1st 2nd Y2 105000 120000 155000 IRR RED Yellow Y3 150000 180000 228000 Payback Brown Yellow Y4 192000 240000 300000 NPV Yellow Red Y5 232000 300000 370000 10000 20000 22000 Y4-Y3 42000 60000 72000 0.24 0.33 0.31 Tic Brown Red Yellow Cap Inv 160,000 Cash payback 3.24 3.33 3.31 Annual 1 13,000 Part B Net 2 13,000 Income 3 13,000 4 13,000 5 13,000 Total 65,000 Depreciation is computed by straight lin a) Compute annual ROR for each proje b) Compute cash payback period for e c) Compute NPV of each project d) Rank projects on each of foregoing
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Yellow -250000 81000 74000 73000 72000 70000 15.06% $18,750.92
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This note was uploaded on 04/05/2009 for the course ORIE 350 taught by Professor Callister during the Summer '08 term at Cornell University (Engineering School).

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350 - Cap Inv Net income Y1 Y2 Y3 Y4 Y5 Brown Red Yellow...

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