Tutorial 04 Solution 2009

Tutorial 04 Solution 2009 - $904,508 $81,406 985914...

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EFN406 Tutorial Four Solution Problem One NPV 0 1 2 3 4 5 A -2000 200 200 200 200 2200 B -2000 527.6 527.6 527.6 527.6 527.6 C -2000 0 0 0 0 3221 Rank Problem Two Rate 11% 0 1 2 3 4 5 A -240000 140000 80000 60000 20000 20000 B -240000 20000 40000 60000 100000 180000 Problem 7 Part One Cost 10000 0 1 2 3 4 5 Life 5 -10000 3000 3000 3000 3000 5000 SV 2000 Rate 10% Dep -2000 -2000 -2000 -2000 -2000 Profit 1000 1000 1000 1000 3000 Ave Profit 1400 ARR 14% Problem 7 Part Two Cost 10000 0 1 2 3 4 5 Life 5 -10000 3000 4000 6000 2000 7000 SV 2000 Rate 10% Dep -2000 -2000 -2000 -2000 -2000 Profit 1000 2000 4000 0 5000 Ave Profit 2400 ARR 24% Question One from attachment Debt Rate 9% Borrow 2000000 Cost of Capital 13% 0 1 2 3 4 5 (3,000,000) 900000 950000 800000 950000 900000 -3000000 796460 743989 554440 582653 488484 796460 1540450 2094890 2677542 3166026 (c) NPV 166,026 (d) IRR 15.248% (b) (h) PI 1.0553 OB Interest Repayment (f) Payback 3.368 $2,000,000 $180,000 2180000 $514,185 (f) DPB 4.6601 $1,665,815 $149,923 1815738 $514,185 (a) Repaymen $514,185 0 $1,301,554 $117,140 1418693 $514,185 (e) AE 47,204
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Unformatted text preview: $904,508 $81,406 985914 $514,185 $471,729 $42,456 514185 $514,185 Revenue 900000 950000 800000 950000 900000 Salvage Value-200000 Depreciation-560000-560000-560000-560000-560000 Profit 340000 390000 240000 390000 140000 Profit 340000 390000 240000 390000 140000 Ave Profit 300000 ARRG 10.00% (g) ARRN 18.75% (i) NTV 305,893 1 2 3 4 5 (3,000,000) 900000 950000 800000 950000 900000 (3,000,000) (2,100,000) (1,150,000) (350,000) 600,000 1,500,000 a c d b 10% 6% 15% IRR $0 $337-$335 10% $0 $222-$231 10%-$0 $407-$399 10% equal CAB BAC equal NPV IRR 19,971 16% 27,049 14% NPV 2,614 Payback 3.33 4 IRR 19% ARR 14% NPV 6,253 Payback 2.50 3 IRR 30% ARR 24% CB $1,665,815 $1,301,554 $904,508 $471,729 $0 Total Profit 1500000...
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Tutorial 04 Solution 2009 - $904,508 $81,406 985914...

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