Quiz set 6

# Quiz set 6 - 2000…” a f = 2.433 b 186.98 11.5 \$25,426...

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Assignment for week of Oct 27 to Nov 5, 2009 For problems 10.22 and 10.13, it will help if you set up a spreadsheet in Excel to determine after tax cash flows. Use Excel’s IRR feature or perhaps “goal seek” or “Solver” to find the IRR. Tuesday, October 27: Problem 10.22 in Park’s text n A n 0 -60,000 1 20,818 2 24,758 3 21,804 4 19,635 5 18,025 6 17,816 7 17,595 8 21,559 NPW @ 14% = \$35,723 Thursday, October 29: Problem 10.13 in Park’s text. n A n 0 -75,500 1 35,577 2 38,328 3 35,394 4 33,633 5 33,633 6 44,262 ; IRR = 42% ; acceptable See next page.

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Tuesday, Nov 3, 2009: Problems from Park’s text: 11.1 Delete the word “average”. Simply find the index. Index = 238.18 11.2 Part a should read “…compute the inflation rate for lumber between 1996 and
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Unformatted text preview: 2000…”. a) f = 2.433% b) 186.98 11.5 \$25,426 11.8 Actual = \$658.35 Constant dollar = \$595.85 Thursday, Nov 5, 2009: Problems from Park’s text: 11.22 parts a and c only. (Recommend setting this one up on Excel.) a) after tax actual cash flows: -160,000, 58,174, 66,750, 151,962 c) NPW @ 20% = \$22,773 > 0 therefore acceptable. 11.24 Assume rental expenses are fixed at \$9,600 per year (12 x 800 = 9,600) (Recommend setting this one up on Excel.) a) after tax actual cash flows: -55000, 7080, 8360, 17448, 23181, 23181, 24611 b) IRR = 17.33% (actual \$ flows)...
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Quiz set 6 - 2000…” a f = 2.433 b 186.98 11.5 \$25,426...

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