FM11 16 - 11-15 a. Financial calculator solution: Plan A...

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

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 11-15 a. Financial calculator solution: Plan A Inputs 20 10 N I Output 8000000 PV 0 PMT FV = -68,108,510 NPVA = $68,108,510 - $50,000,000 = $18,108,510. Plan B Inputs 20 10 N I Output 3400000 PV 0 PMT FV = -28,946,117 NPVB = $28,946,117 - $15,000,000 = $13,946,117. Plan A Inputs 20 -50000000 Output I 0 PV PMT FV -15000000 N 8000000 3400000 0 PV PMT FV = 15.03 IRRA = 15.03%. Plan B Inputs 20 N Output I = 22.26 IRRB = 22.26%. Answers and Solutions: 11 - 16 ...
View Full Document

Ask a homework question - tutors are online