Unformatted text preview: forklift system is ($838,834). Thus, the forklift system is expected to be ($838,834)  ($911,067) = $72,233 less costly than the conveyor system, and hence the forklift trucks should be used. Financial calculator solution: Input: CF = 500000, CF 1 = 120000, N j = 4, CF 2 = 20000, I = 8, NPV C = ? NPV C = 911,067. Input: CF = 200000, CF 1 = 160000, N 1 = 5, I = 8, NPV F = ? NPV F = 838,834. 1121 a. Payback A (cash flows in thousands): Annual Period Cash Flows Cumulative 0 ($25,000) ($25,000) 1 5,000 (20,000) 2 10,000 (10,000) 3 15,000 5,000 4 20,000 25,000 Payback A = 2 + $10,000/$15,000 = 2.67 years....
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 Spring '08
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 Net Present Value, Financial Calculator Solution, corresponding MIRR

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