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...

• Homework Help
• 27

This preview shows page 1 - 6 out of 27 pages.

(\$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%

Subscribe to view the full document.

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
a. IRR = 19.96% a. IRR = 27.69% a. IRR = 17.93% a. IRR = 35.13% a. IRR = 52.62% a. IRR = 29.43%

Subscribe to view the full document.

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
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

Subscribe to view the full document.

• Spring '15

### What students are saying

• 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.

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

• 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.

Dana University of Pennsylvania ‘17, Course Hero Intern

• 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.

Jill Tulane University ‘16, Course Hero Intern