chp.4 Spreadsheet extra credit

chp.4 Spreadsheet extra credit - least $860,000 for them to...

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A.) Year Cash Flow PVIF Future Savings 2010  $110,000.00  0.94  $102,850.00  2011  $120,000.00  0.87  $104,760.00  2012  $130,000.00  0.82  $106,080.00  2013  $150,000.00  0.76  $114,450.00  2014  $160,000.00  0.71  $114,080.00  2015  $90,000.00  0.67  $59,940.00  2016  $90,000.00  0.48  $43,380.00  2017  $90,000.00  0.43  $39,060.00  2018  $90,000.00  0.39  $35,190.00  2019  $90,000.00  0.35  $31,680.00  2020  $90,000.00  0.32  $28,530.00  Total  $780,000.00  B.) No the Firm should not undertake this project because the savings only total $780,000 and
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Unformatted text preview: least $860,000 for them to do this project. C.) The Interest Rate Risk is the chance that the interest rates will change and then change the for the worse you just don't know. management had strict regulations saying that the savings would need to equal at e return and bond value.This could make your future values change for the better or...
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This note was uploaded on 02/21/2011 for the course ACFI 385 taught by Professor Long during the Spring '10 term at Bridgewater State University.

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chp.4 Spreadsheet extra credit - least $860,000 for them to...

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