Chap_11_Assignment_Solutions

# Chap_11_Assignment_Solutions - BUS 320 Chapter 11...

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

BUS 320 Chapter 11 Assignment Solutions 1) a) 1, , P/YR 12, I/YR 52125, +/-, CF 0 12000, CF 1 12000, CF 2 12000, CF 3 12000, CF 4 12000, CF 5 12000, CF 6 12000, CF 7 12000, CF 8 , NPV = \$7,486.68 b) 1, , P/YR 52125, +/-, CF 0 12000, CF 1 12000, CF 2 12000, CF 3 12000, CF 4 12000, CF 5 12000, CF 6 12000, CF 7 12000, CF 8 , IRR/YR = 16.0% c) Year Cumulative Cash Flows 1 \$12,000 2 \$24,000 3 \$36,000 4,125 4 \$48,000 Payback = 4 + --------- = 5 \$60,000 12,000 6 \$72,000 4.34 years 7 \$84,000 8 \$96,000 2) a) NPV @ 5%: Project A Project B 5, I/YR 5, I/YR 25, +/-, CF 0 20, +/-, CF 0 5, CF 1 10, CF 1 10, CF 2 9, CF 2 17, CF 3 6, CF 3 , NPV = \$3.52 , NPV = \$2.87

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

View Full Document
NPV @ 10%: Project A Project B 10, I/YR 10, I/YR 25, +/-, CF 0 20, +/-, CF 0 5, CF 1 10, CF 1 10, CF 2 9, CF 2 17, CF 3 6, CF 3 , NPV = \$.58 , NPV = \$1.04 NPV @ 15%: Project A Project B 15, I/YR 15, I/YR 25, +/-, CF 0 20, +/-, CF 0 5, CF 1 10, CF 1 10, CF 2 9, CF 2 17, CF 3 6, CF 3 , NPV = -\$1.91 , NPV = -\$.55 b) IRR @ 5%,10%, and 15%: Project A Project B 25, +/-, CF
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 3

Chap_11_Assignment_Solutions - BUS 320 Chapter 11...

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

View Full Document
Ask a homework question - tutors are online