Chapter 20-24 NPV Refurb - Cash PV of $1...

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E20-24 (15-20 min) Req. 1 Net Cash PV of $1 Present Value of Year Inflow Factor at 14% Net Cash Inflow 1 $264,000 0.88 $231,528 2 251,000 0.77 $193,019 3 228,000 0.68 $153,900 4 213,000 0.59 $126,096 ($6,699.00) 5 202,000 0.52 $104,838 6 176,000 0.46 $80,256 Present value of net cash inflows $889,637 Less: Investment (900,000) Net present value ($10,363.00) Req. 2
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Unformatted text preview: Cash PV of $1 Year (outflow)/inflow Factor Present Value Refurbishment at the end of Year 6 (106,000.00) 0.456 (48,336.00) Cash inflows in Year 7 78,000.00 0.400 31,200.00 Residual value 52,000.00 0.400 20,800.00 Additional NPV provided from refurbishment 3,664.00 Total NPV after Refurbishment...
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