# FM11 7 - solve for IRR = 14.99 ≈ 15 MIRR PV Costs =...

This preview shows page 1. Sign up to view the full content.

Project B: Using a financial calculator, enter the following: CF 0 = -15000000 CF 1 = 20000000 CF 2 = 10000000 CF 3 = 6000000 I = 10; NPV = \$15,954,170. Change I = 10 to I = 5; NPV = \$18,300,939. Change I = 5 to I = 15; NPV = \$13,897,838. 11-8 Truck: NPV = -\$17,100 + \$5,100(PVIFA 14%,5 ) = -\$17,100 + \$5,100(3.4331) = -\$17,100 + \$17,509 = \$409. (Accept) Financial calculator: Input the appropriate cash flows into the cash flow register, input I = 14, and then solve for NPV = \$409. Financial calculator: Input the appropriate cash flows into the cash flow register and then
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: solve for IRR = 14.99% ≈ 15%. MIRR: PV Costs = \$17,100. FV Inflows: PV FV 0 1 2 3 4 5 | | | | | | 14% 5,100 5,100 5,100 5,100 5,100 5,814 6,628 7,556 8,614 17,100 MIRR = 14.54% (Accept) 33,712 Financial calculator: Obtain the FVA by inputting N = 5, I = 14, PV = 0, PMT = 5100, and then solve for FV = \$33,712. The MIRR can be obtained by inputting N = 5, PV = -17100, PMT = 0, FV = 33712, and then solving for I = 14.54%. Answers and Solutions: 11 - 7...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online