022610_UGBA+102B_Discussion_Section_05

022610_UGBA+102B_Discussion_Section_05 - UGBA 102B...

Info iconThis preview shows pages 1–22. Sign up to view the full content.

View Full Document Right Arrow Icon
UGBA 102B Discussion Section 2/26/10 DCF Analysis and the Impact of Taxes
Background image of page 1

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

View Full DocumentRight Arrow Icon
Reading Present Value Tables Concept Review page 2 Periods 10% 12% 14% 1 0.909 0.893 0.877 2 1.736 1.690 1.647 . . . . . . . . . 9 5.759 5.328 4.946 10 6.145 5.650 5.216 Present Value of an Annuity
Background image of page 2
Years Cash Flows 10% Factor Present Value Investment in equipment Now $ (160,000) 1.000 (160,000) $ Working capital needed Now (100,000) 1.000 (100,000) Net present value Net Present Value Method page 3 Concept Review
Background image of page 3

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

View Full DocumentRight Arrow Icon
Years Cash Flows 10% Factor Present Value Investment in equipment Now $ (160,000) 1.000 (160,000) $ Working capital needed Now (100,000) 1.000 (100,000) Annual net cash inflows 1-5 80,000 3.791 303,280 Net present value Present value of an annuity of $1 factor for 5 years at 10%. Net Present Value Method page 4 Concept Review
Background image of page 4
Years Cash Flows 10% Factor Present Value Investment in equipment Now $ (160,000) 1.000 (160,000) $ Working capital needed Now (100,000) 1.000 (100,000) Annual net cash inflows 1-5 80,000 3.791 303,280 Relining of equipment 3 (30,000) 0.751 (22,530) Net present value Present value of $1 factor for 3 years at 10%. Net Present Value Method page 5 Concept Review
Background image of page 5

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

View Full DocumentRight Arrow Icon
Years Cash Flows 10% Factor Present Value Investment in equipment Now $ (160,000) 1.000 (160,000) $ Working capital needed Now (100,000)
Background image of page 6
Background image of page 7

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

View Full DocumentRight Arrow Icon
Background image of page 8
Background image of page 9

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

View Full DocumentRight Arrow Icon
Background image of page 10
Background image of page 11

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

View Full DocumentRight Arrow Icon
Background image of page 12
Background image of page 13

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

View Full DocumentRight Arrow Icon
Background image of page 14
Background image of page 15

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

View Full DocumentRight Arrow Icon
Background image of page 16
Background image of page 17

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

View Full DocumentRight Arrow Icon
Background image of page 18
Background image of page 19

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

View Full DocumentRight Arrow Icon
Background image of page 20
Background image of page 21

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

View Full DocumentRight Arrow Icon
Background image of page 22
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 22

022610_UGBA+102B_Discussion_Section_05 - UGBA 102B...

This preview shows document pages 1 - 22. Sign up to view the full document.

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