FileName: 8481addbc2ab1ca5859c4e5e0eb0bb0ab7799c56.xls, Tab: Exercise E122, Page 1 of 2, 12/28/2011, 19:01:48
Name:
Date:
Instructor:
Course:
$21,000
Each project will last for
3
years and produce the following net annual cash flows.
Year
AA
BB
CC
1
$7,000
$9,500
$13,000
2
9,000
9,500
10,000
3
15,000
9,500
11,000
Total
$31,000
$28,500
$34,000
The equipment's salvage value is zero, and Jack uses straightline depreciation. Jack will not accept any project with a cash payback period
over 2 years. Jack's required rate of return is
12%
Instructions:
AA
Year
Net Annual Cash Flow
Cumulative Cash Flow
1
Amount
Formula
2
Amount
Formula
3
Amount
Formula
Formula work area
Formula work area
BB
Formula work area
CC
Year
Net Annual Cash Flow
Cumulative Cash Flow
1
Amount
Formula
2
Amount
Formula
3
Amount
Formula
Formula work area
AA
BB
CC
Year
1
Formula
Amount
Formula
Amount
Formula
Amount
Formula
2
Formula
Amount
Formula
Amount
Formula
Amount
Formula
3
Formula
Amount
Formula
Amount
Formula
Amount
Formula
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 Winter '07
 LeonardA.Bacon
 Managerial Accounting, Net Present Value, Formula work area

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