Ch 10-1 excel.xlsx - a b c where FCFt = the annual free cash flow in time period t IO = the initial cash outlay n = the project's expected life IRR =

Ch 10-1 excel.xlsx - a b c where FCFt = the annual free...

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($12,000) a. $16,707 8 b. $50,668 14 c. $110,647 22 where FCFt = the annual free cash flow in time period t d. $13,972 IO = the initial cash outlay 3 n = the project's expected life 0 IRR = the project's internal rate of return 0 Excel formula = rate(nper,pmt,pv,fv,type) rate = 4.22% a. IRR = 4.22% rate = 10.84% b. IRR = 10.84% rate = 10.62% c. IRR = 10.62% rate = 5.20% d. IRR = 5.20% ($11,000) a. $16,538 9 b. $45,571 14 c. $110,745 21 where FCFt = the annual free cash flow in time period t d. $14,022 IO = the initial cash outlay 4 n = the project's expected life 0 IRR = the project's internal rate of return 0 Excel formula = rate(nper,pmt,pv,fv,type) rate = 4.63% a. IRR = 4.63% rate = 10.69% b. IRR = 10.69% rate = 11.62% c. IRR = 11.62% rate = 6.26% d. IRR = 6.26%
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pv (initial outlay) fv (cash flow) n fv (cash flow) n fv (cash flow) n fv (cash flow) n TYPE PMT pv (initial outlay) fv (cash flow) n fv (cash flow) n fv (cash flow) n fv (cash flow) n TYPE PMT
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a. IRR = 19.96% a. IRR = 27.69% a. IRR = 17.93% a. IRR = 35.13% a. IRR = 52.62% a. IRR = 29.43%
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Year Cash Flow a. Initial ($12,000) 1 $3,000 2 $7,000 3 $8,000 b. Initial ($12,000) 1 $8,000 2 $7,000 3 $3,000 c. Initial ($12,000) 1 $3,000 2 $3,000 3 $3,000 4 $3,000 5 $3,000 6 $7,000 Year Cash Flow a. Initial ($10,000) 1 $3,500 2 $6,500 3 $9,500 b. Initial ($10,000) 1 $9,500 2 $6,500 3 $3,500 c. Initial ($10,000) 1 $3,500 2 $3,500 3 $3,500 4 $3,500 5 $3,500 6 $6,500
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PROJECT A PROJECT B PROJECT C Initial Outlay ($1,000) ($11,000) ($5,000) year Inflow year 1 600 6000 1000 1 Inflow year 2 200 4000 1000 2 Inflow year 3 100 4000 3000 3 Inflow year 4 200 4000 3000 4 Inflow year 5 500 4000 3000 5 after 3 years 900 10000 2000 left yr 3 100.00 1000.00 3000.00 Payback Period 3.50 2.25 3.00 reject accept accept PROJECT A PROJECT B PROJECT C Initial Outlay ($1,000) ($10,000) ($5,000) year
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