Problem14-40

# Problem14-40 - Year Cash Flow Discount Factor Present Value...

This preview shows pages 1–2. Sign up to view the full content.

Problem 14-40 Name: Enter the appropriate amounts or formulas in the shaded cells. An asterisk (*) will appear in the column to the right of an incorrect amount. 1. Payback period \$16,800 year (to two decimals) 24,000 year (to two decimals) 29,400 year (to two decimals) 3,800 year (to two decimals) \$74,000 years (to two decimals) 2. - - = Average income / Investment = ARR ARR 3. Year Cash Flow Discount Factor Present Value 0 \$(74,000) 1 16,800 2 24,000 3 29,400 4 35,400 NPV IRR (by trial and error using discount factors for various rates to obtain an NPV closest to zero):

This preview has intentionally blurred sections. Sign up to view the full version.

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

Unformatted text preview: Year Cash Flow Discount Factor Present Value \$(74,000) 1 16,800 2 24,000 3 29,400 4 35,400 NPV The IRR is about Should Dr. Avard purchase the equipment (key "Yes" or "No")? Annual cash flow Average cash revenue Average cash expenses Average depreciation Average income (Key essay answer here) 4. Year Cash Flow Discount Factor Present Value \$(74,000) 1 11,200 2 16,000 3 19,600 4 25,600 NPV Should Dr. Avard purchase the equipment (key "Yes" or "No")?...
View Full Document

{[ snackBarMessage ]}

### Page1 / 2

Problem14-40 - Year Cash Flow Discount Factor Present Value...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online