Chapter 11 Homework Solutions

# Chapter 11 Homework Solutions - Chapter 11 Homework...

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Chapter 11 Homework Solutions 11-1)            1,  , P/YR 12, I/YR 52125, +/-, CF 0 12000, CF 1 12000, CF 2 12000, CF 3 12000, CF 4 12000, CF 5 12000, CF 6 12000, CF 7 12000, CF 8 , NPV   =    \$7,486.68 11-2) 1,  , P/YR 52125, +/-, CF 0 12000, CF 1 12000, CF 2 12000, CF 3 12000, CF 4 12000, CF 5 12000, CF 6 12000, CF 7 12000, CF 8 , IRR/YR   =    16.0%  11-4)    Year Cumulative Cash Flows 1 \$12,000 2 \$24,000 3 \$36,000     4,125 4 \$48,000 Payback = 4 + --------- =  4.34 years 5 \$60,000    12,000 6 \$72,000

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7 \$84,000 8 \$96,000 11-6)  a.   NPV @ 5%: Project A Project B 5, I/YR 5, I/YR 25, +/-, CF 0 20, +/-, CF 0 5, CF 1 10, CF 1 10, CF 2   9, CF 2 17, CF 3   6, CF 3 , NPV =  \$3.52 , NPV =  \$2.87       NPV @ 10%: Project A Project B 10, I/YR 10, I/YR 25, +/-, CF 0 20, +/-, CF 0 5, CF 1 10, CF 1 10, CF 2   9, CF 2 17, CF 3   6, CF 3 , NPV =  \$.58 , NPV =  \$1.04       NPV @ 15%:
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Chapter 11 Homework Solutions - Chapter 11 Homework...

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