cash flows - PAYBACK PERIOD FOR PROJECT B: YEAR CASH FLOW...

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project A 0 1 2 3 4 5 INVESTMENT -100000 CASH INFLOW 10000 20000 30000 40000 50000 DISCOUNT FACTOR 1 0.91 0.83 0.75 0.68 0.62 PV -100000 9091 16528 22539 27320 31045 NPV 6523 project B 0 1 2 3 4 5 INVESTMENT -100000 CASH INFLOW 50000 40000 30000 0 0 DISCOUNT FACTOR 1 0.91 0.83 0.75 0.68 0.62 PV -100000 45455 33056 22539 0 0 NPV 1050 project C 0 1 2 3 4 5 INVESTMENT -100000 CASH INFLOW 25000 25000 25000 25000 25000 DISCOUNT FACTOR 1 0.91 0.83 0.75 0.68 0.62 PV -100000 22727.5 20660 18782.5 17075 15522.5 NPV -5232.5 project D 0 1 2 3 4 5 INVESTMENT -100000 CASH INFLOW 0 0 45000 55000 60000 DISCOUNT FACTOR 1 0.91 0.83 0.75 0.68 0.62 PV -100000 0 0 33808.5 37565 37254 NPV 8627.5 (A) RANKING BASED ON PAYBACK PERIOD (B) RANKING
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1 PROJECT B 1 AND THE OTHER PROJECTS HAVE SAME PAYBACK PERIOD 2 3 4
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PAYBACK PERIOD FOR PROJECT A: YEAR CASH FLOW CUMULATIVE CASH FLOW 0 -100000 -100000 1 10000 -90000 2 20000 -70000 3 30000 -40000 4 40000 0 5 50000 50000 PAYBACK PERIOD FOR PROJECT A 4 YEARS
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Unformatted text preview: PAYBACK PERIOD FOR PROJECT B: YEAR CASH FLOW CUMULATIVE CASH FLOW-100000-100000 1 50000-50000 2 40000-10000 3 30000 20000 4 5 PAYBACK PERIOD FOR PROJECT B 2.3 YEARS PAYBACK PERIOD FOR PROJECT C: YEAR CASH FLOW CUMULATIVE CASH FLOW-100000-100000 1 25000-75000 2 25000-50000 3 25000-25000 4 25000 5 25000 25000 PAYBACK PERIOD FOR PROJECT C4 YEARS PAYBACK PERIOD FOR PROJECT D: YEAR CASH FLOW CUMULATIVE CASH FLOW-100000-100000 1-100000 2-100000 3 45000-55000 4 55000 5 60000 60000 PAYBACK PERIOD FOR PROJECT D4 YEARS G BASED ON NET PRESENT VALUE PROJECT D NPV=$8627.5 PROJECT A NPV=$6523 PROJECT B NPV=$1050 PROJECT C NPV=$(5232.5)...
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This note was uploaded on 08/22/2011 for the course ACCOUNTING 201 taught by Professor Stevejoseph during the Winter '11 term at Aarhus Universitet.

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cash flows - PAYBACK PERIOD FOR PROJECT B: YEAR CASH FLOW...

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