3232ex4-1 (1) - 0.00-85,000.00 1...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ME 3232 4-1a Period Cash Flow Cumulative Flow 1 0 -85000 -85000 1 15000 -70000 2 25000 -45000 3 35000 -10000 4 45000 35000 5 45000 80000 6 35000 115000 Note: Purchase price = $105,000 Trade in benefit = $20,000 Net purchase price = $85,000 Payback period via interpolation is 3.22 years
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Period Cash Flow Cumulative Flow 1 10% fund cost Cumulative flow w/cost of funds 0 -85000 -85000 0 -85000 1 15000 -70000 -8500 -78500 2 25000 -45000 -7850 -61350 3 35000 -10000 -6135 -32485 4 45000 35000 -3248.5 9266.5 5 45000 80000 926.65 55193.15 6 35000 115000 5519.32 95712.47 Payback via interpolation is 3.78 years
Background image of page 2
Period Cash Flow Cumulative Flow 1 10% fund cost Cumulative flow w/cost of funds 0 -85000 -85000
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 0.00-85,000.00 1 15000-70000-8,500.00-78,500.00 2 25000-45000-7,850.00-61,350.00 3 35000-10000-6,135.00-32,485.00 4 45000 35000-3,248.50 9,266.50 5 45000 80000 926.65 55,193.15 6 35000 115000 5,519.32 95,712.47 Interest rate PE FE AE 10 54,027.19 95,712.47 12405.04 15 33,193.45 76,778.47 8770.94 20 16,623.05 49,636.16 4998.65 25 3,272.64 12,484.13 1108.83 26 918.68 3,676.11 318.44 27-1,342.17-5,631.58-475.78 Notes: PE computed based on cash flow FE = PE*(1+i)^6 AE = PE*(A/P, I,6) FE and AE could also be computed directly from cash flow like PE...
View Full Document

This note was uploaded on 11/19/2010 for the course ME 3232 taught by Professor Lyon during the Fall '10 term at University of New Brunswick.

Page1 / 3

3232ex4-1 (1) - 0.00-85,000.00 1...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online