A12 Q9 - ($9,153.02($8,959.91 $4,265.15 Cummulative Cash...

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Question 9 I recommend project Toe, since this project has the highest IRR, NPV, and shortest Cash Payback time period. Tic Tac Toe Cap Inv 160000 180,000 200,000 Cash flow Net income Tic Tac Toe Y1 13,000 18,000 27,000 Y0 -160000 -180000 -200000 Y2 13,000 17,000 22,000 Y1 45000 54000 67000 Y3 13,000 16,000 21,000 Y2 45000 53000 62000 Y4 13,000 12,000 18,000 Y3 45000 52000 61000 Y5 13,000 9,000 12,000 Part A) Y4 45000 48000 58000 Total 65,000 72,000 100,000 Part C) Y5 45000 45000 52000 IRR = 12.56% 12.81% 15.93% NPV =
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Unformatted text preview: ($9,153.02) ($8,959.91) $4,265.15 Cummulative Cash flow Tic Tac Toe Part D) Rank Y1 45000 54000 67000 1st 2nd 3rd Y2 90000 107000 129000 IRR Toe Tac Tic Y3 135000 159000 190000 Payback Toe Tac Tic Y4 180000 207000 248000 NPV Toe Tac Tic Y5 225000 252000 300000 25000 21000 10000 Y4-Y3 45000 48000 58000 0.555556 0.4375 0.172414 Part B) Cash payback Tic Tac Toe Years 3.555556 3.4375 3.172414...
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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.

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