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# p12-1a - Name Date Instructor Course Managerial Accounting...

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FileName: 1a70eb29a59b6130b68d2da792bf2e9170d9cbb2.xls , Tab: Problem P12-1A, Page 1 of 2, 12/28/2011, 19:03:25 Name: Date: Instructor: Course: life of 5 years. Relevant data on each project are as follows: Project Moe Project Larry Project Curly Capital investment \$150,000 \$160,000 \$200,000 Annual net income Year 1 \$13,000 \$18,000 \$27,000 2 13,000 17,000 22,000 3 13,000 16,000 21,000 4 13,000 12,000 13,000 5 13,000 9,000 12,000 Total \$65,000 \$72,000 \$95,000 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15% (Assume that cash flows occur evenly throughout the year.) Instructions: Project Moe Amount ÷ [( Amount + Amount )] = Formula years Project Larry Year Cash Flow Cumulative Cash Flow 1 Amount ( Amount + Amount ) Formula 2 Amount ( Amount + Amount ) Formula 3 Amount ( Amount + Amount ) Formula 4 Amount ( Amount + Amount ) Formula 5 Amount ( Amount + Amount ) Formula Cash payback period Amount - Amount = Formula Amount ÷ Amount = Formula Year Formula years Project Curly Year Cash Flow Cumulative Cash Flow 1 Amount ( Amount + Amount ) Formula 2 Amount ( Amount + Amount ) Formula 3 Amount ( Amount + Amount ) Formula 4 Amount ( Amount + Amount ) Formula 5 Amount ( Amount + Amount ) Formula Cash payback period Amount - Amount = Formula Amount ÷ Amount = Formula Year Formula years Project Moe Item Amount Years PV Factor Present Value Title Amount Number

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