FM11 6 - 4,846.80 7,486.20 The discounted payback period is...

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11-6 The project’s discounted payback period is calculated as follows: Annual Discounted @12% Period Cash Flows Cash Flows Cumulative 0 ($52,125) ($52,125.00) ($52,125.00) 1 12,000 10,714.80 (41,410.20) 2 12,000 9,566.40 (31,843.80) 3 12,000 8,541.60 (23,302.20) 4 12,000 7,626.00 (15,676.20) 5 12,000 6,808.80 (8,867.40) 6 12,000 6,079.20 (2,788.20) 7 12,000 5,427.60 2,639.40 8 12,000
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Unformatted text preview: 4,846.80 7,486.20 The discounted payback period is 6 + 60 . 427 , 5 $ 20 . 788 , 2 $ years, or 6.51 years. 11-7 Project A: Using a financial calculator, enter the following: CF = -15000000 CF 1 = 5000000 CF 2 = 10000000 CF 3 = 20000000 I = 10; NPV = $12,836,213. Change I = 10 to I = 5; NPV = $16,108,952. Change I = 5 to I = 15; NPV = $10,059,587. Answers and Solutions: 11 - 6...
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This note was uploaded on 07/13/2011 for the course FIN 4414 taught by Professor Staff during the Spring '08 term at University of Florida.

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