Keyes (2) - Question 10-8 Project Truck 0 1 2 3 4 5 project...

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Question 10-8 Project Truck Pulley 0 -17100 -22430 1 5100 7500 2 5100 7500 3 5100 7500 4 5100 7500 5 5100 7500 IRR 14.99% 20.00% NPV $409.00 $3,318 MIRR 14.54% 17.19% Question 10-9 project Electric Gas powered 0 -22000 -17500 1 6290 5000 2 6290 5000 3 6290 5000 4 6290 5000 5 6290 5000 6 6290 5000 NPV $3,861 $3,057 IRR 18.00% 17.97% As the electric project has higher NPV and IRR, therefore it should be accepted. Question 11-2 Projected sales $10,000,000 Operating cost $7,000,000 Depreciation $2,000,000 Net income/(loss) $1,000,000 Tax @ 40% $400,000 operating cash flow $2,600,000 Question 11-3 Cost of equipment $20,000,000 Accumulated depreciatio $16,000,000 Book value $4,000,000 Sale value $5,000,000 Profit on sale $1,000,000 Tax on profit $400,000 after tax salvage value $4,600,000
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318 318000 4356600 13.7 14 95400 327000 9000 126000 1580 755 1.00 28 29.00 21895 790 755 35 28 980 -95.8 -0.02 0.35 0.33 1580.7 4740 4790 -50 0.35 -17.5 962.5 1580 2370 1.6 180160 288256 2520 11 163160 198160 -163149 150
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This note was uploaded on 12/04/2011 for the course ECONOMICS 201 taught by Professor Rcollier during the Spring '10 term at Portland CC.

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Keyes (2) - Question 10-8 Project Truck 0 1 2 3 4 5 project...

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