Cap.BudgProb(2) - Cash Outflow Working Cap. Oper. Exp....

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Beg. End End End End End Yr. 1 Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Cash Outflow (300,000) Working Cap. (30,000) Oper. Exp. (60,000) (60,000) (60,000) (60,000) (60,000) Overhaul (30,000) Cost Savings 135,000 135,000 135,000 135,000 135,000 Salvage Value Cash Flows (330,000) 75,000 75,000 75,000 75,000 45,000 Discount 10% 1 0.91 0.83 0.75 0.68 0.62 PV Amount (330,000) 68175 62175 56325 51225 27945 Sum of PV 374322 NPV $44,322
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End End Yr. 6 Yr. 7 30,000 (60,000) (60,000) 135,000 135,000 24,000 75,000 129,000 0.56 0.51 42300 66177
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Beg End End End End Yr. 1 Yr. 1 Yr. 2 Yr. 3 Yr. 4 Equipment Revenue Salvage Expenses Net Cash Flow 0 0 0 0 0 Discount 1 0.89 0.8 0.71 0.64 PV 0 0 0 0 0 Sum of PV 0 NPV 0
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Beg End End End End Yr. 1 Yr. 1 Yr. 2 Yr. 3 Yr. 4 Equipment (74,000) Revenue 19,800 27,000 32,400 32,400 Salvage 6,000 Expenses (3,000) (3,000) (3,000) (3,000) Net Cash Flow (74,000) 16,800 24,000 29,400 35,400 Discount 1 0.89 0.8 0.71 0.64 PV (74,000) 15,002 19,128 20,933 22,514 Sum of PV 77,578 NPV $3,578
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Beg.
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This note was uploaded on 10/22/2009 for the course BUS 500 taught by Professor Steve during the Spring '09 term at American College of Gastroenterology.

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Cap.BudgProb(2) - Cash Outflow Working Cap. Oper. Exp....

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