UGBA 103_5.1 - IRR 14.99 20.00 MIRR 14.54 17.19#11-9 Gas NPV E NPV Gas IRR E IRR-17,500-22,000-17,500-22,000 5,000 6,290 5,000 6,290 5,000 6,290

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Chapter 11 NPV/IRR Calculations #11-8 A B -15 -15 5 20 10 10 20 6 r = 10% $12,836,213 $15,954,170 -15 -15 5 20 10 10 20 6 r = 5% $16,108,952 $18,300,939 -15 -15 5 20 10 10 20 6 r = 15% $10,059,587 $13,897,838
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Chapter 11 NPV/IRR Calculations #11-8 Truck Pulley Truck Pulley -17,100 -22,430 5,100 7,500 8,613.70 12,667.20 5,100 7,500 7,555.87 11,111.58 5,100 7,500 6,627.96 9,747.00 5,100 7,500 5,814.00 8,550.00 5,100 7,500 5,100.00 7,500.00 NPV $408.71 $3,318.11 Both NPV and IRR indicate that both projects should be undertaken.
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Unformatted text preview: IRR 14.99% 20.00% MIRR 14.54% 17.19% #11-9 Gas NPV E NPV Gas IRR E IRR-17,500-22,000-17,500-22,000 5,000 6,290 5,000 6,290 5,000 6,290 5,000 6,290 5,000 6,290 5,000 6,290 5,000 6,290 5,000 6,290 • both perspectives indicate the choice is electric, 5,000 6,290 5,000 6,290 but the correct perspective is to use NPV 5,000 6,290 5,000 6,290 3,057 3,861 17.97% 18.00%...
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This note was uploaded on 07/17/2010 for the course UGBA 18195 taught by Professor Johngonzales during the Summer '10 term at University of California, Berkeley.

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UGBA 103_5.1 - IRR 14.99 20.00 MIRR 14.54 17.19#11-9 Gas NPV E NPV Gas IRR E IRR-17,500-22,000-17,500-22,000 5,000 6,290 5,000 6,290 5,000 6,290

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