Problem14-40

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

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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):
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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")?...
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Problem14-40 - Year Cash Flow Discount Factor Present Value...

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