FM11 4 - FV 0 1 2 3 4 5 6 7 8 | | | | | | | | | 12% 12,000...

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SOLUTIONS TO END-OF-CHAPTER PROBLEMS 11-1 NPV = -$52,125 + $12,000[(1/I)-(1/(I*(1+I) N )] = -$52,125 + $12,000[(1/0.12)-(1/(0.12*(1+0.12) 8 )] = $7,486.68. Financial calculator: Input the appropriate cash flows into the cash flow register, input I = 12, and then solve for NPV = $7,486.68. 11-2 Financial calculator: Input the appropriate cash flows into the cash flow register and then solve for IRR = 16%. 11-3 MIRR: PV Costs = $52,125. FV Inflows: PV
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Unformatted text preview: FV 0 1 2 3 4 5 6 7 8 | | | | | | | | | 12% 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 13,440 15,053 16,859 18,882 21,148 23,686 26,528 Answers and Solutions: 11 - 4 52,125 MIRR = 13.89% 147,596 Financial calculator: Obtain the FVA by inputting N = 8, I/YR = 12, PV = 0, PMT = 12000, and then solve for FV = $147,596. The MIRR can be obtained by inputting N = 8, PV = -52125, PMT = 0, FV = 147596, and then solving for I = 13.89%....
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