Exam review.xlsx - Exam review Year Total Cash Flow 0-42398 Interest Rate 12 1 Net present Value 2 IRR($842.12 10.89 3 Year Total Cash Flow Project A

Exam review.xlsx - Exam review Year Total Cash Flow 0-42398...

This preview shows page 1 - 7 out of 7 pages.

Exam review Year 0 1 Total Cash Flow -42398 13407 Interest Rate 12% 1 Net present Value ($842.12) 2 IRR 10.89% 3 Year 0 1 Project A Total Cash Flow -50000 24800 Interest Rate 15% Net present Value $13,157.24 IRR 30% Project B Year 0 1 Total Cash Flow -50000 41000 Interest Rate 14% Net present Value $8,256.98 IRR 26% 4 Year Beginning Cash Flow 1 -6000 3600 2 -2400 3600 3 1200 3600 5 Year 0 1 Cash Flow $ (1,000,000.00) 200000 Rate 12% 5 NPV ($6,472.05) Reject 6 IRR 11.81% Accept 7=A 8= B 9=B 10 Opportunity Cost 340000 Building cost 1470000 Initial Cash Flow 1810000 11 Sales 75000 Costs 57000 Depreciation 17400 Accept Project A due to Net Present Value being higher
Image of page 1
Taxable Income 600 Taxes 180 Net Income 420 OCF 17820 12 Year 0 1 Capital Spending -39000 Net Working Capital -3000 Oper Cash flow 26000 Total cash flow -42000 26000 Rate of Return 16% NPV $32,409.57 IRR 50.56 13 Year 0 1 Capital Spending -249000 Net Working Capital -10000 Oper Cash flow 73000 Total cash flow -259000 73000 Rate of Return 14.5% NPV $71,801.34 IRR 22.65% 14 Sales 1585500 Variable Cost 546000 Fixed Cost 589000 Depreciation 129000 Taxable 321500
Image of page 2
Image of page 3
Image of page 4
Image of page 5
Image of page 6
Image of page 7

You've reached the end of your free preview.

Want to read all 7 pages?

  • Fall '06
  • Booth

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors