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09_23_SOKZAI - 0-1-2-3-10-111,400 111,400 r = 6/yr...

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Your Code: SOKZAI Chapter: 9 Problem: 23 Component I: A company tries to plan a conventional project has a payback of 10 years with a cost of $111,400. It the required return is 6%, what is the worst-case NPV if the company accepts the project? Component II: The worst-case is the payback occurs at the very end of tenth year.
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Unformatted text preview: 0------------1------------2-------------3-------------------10-111,400 111,400 r = 6%/yr Component III: NPV = -111,400 + 111,400/(1.06)^10 = -111,400+62,205.17815 = - 49,194.82185 Component IV: 10 6-111,400 N I/Y PV PMT FV 62,205.17815 NPV = -111,400 + 62,205.17815 = - 49,194.82185...
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