costacctg13_cf_ch21 - 2 High Point NPV $26,448 IRR 17.87...

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Chapter 21. Capital Budgeting and Cost Analysis 21-17 1. a. $56,300 b. 2.67 years c. 25.42% d. 17.5% 21-18 1. a. $36,048 b. 3.93 years c. 21.96% d. 15.46% 21-19 1. a. $9,447 b. 4.803 years c. 16.18% d. 10.82% 21-20 1. $(1,830) 2. 2.83 years 3. 11.44% 4. 6.52% 21-21 1. Plan I $(3,901,725) Plan II $(4,035,000) Plan III $(3,753,000) 21-22 1b. A 3.0 years B 2.25 years C 2.0 years Choose Projects C and B. 2. A $169,000 B $207,800 C $(311,500) 3. Choose Projects B and A 21-23 1. NPV $14,142 2. IRR 16.54% 3. AARR 12.71% 21-24 1. a. NPV $7,013 b. Payback 2.97 years c. IRR 15.59% 21-25 1. a. NPV $23,119 b. Payback 2.63 years c. IRR 26.06% 21-26 1. NPV: Option 1, $204,000 Option 2, $240,078 Option 3, NPV $154,915 21-27 2. Payback: Modernizing 3.04 years Replace 3.63 years 3. NPV: Modernizing $27,035,424 Replace $28,540,032 21-28 2. NPV: Modernizing $15,416,955 Replace $13,839,302 21-29 1. NPV $4,330,000 2a. NPV $38,750 2b. NPV $2,613,500 21-30 1. NPV $9,520 IRR 10.6%
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Unformatted text preview: 2. High Point: NPV $26,448 IRR 17.87% Low Point: NPV $(7,408) IRR 2.11% 3. High Point: NPV $18,205 IRR 14.43% Low Point: NPV $4,368 IRR 8.15% 4. NPV $4,970 Accept, NPV is positive. 21-31 1. 5.30 years 2. 5.68 years 21-32 1. a. $6,000 b. Var $16,200 and Fixed $900 (in favor of new machine) c. $9,000 per year d. $17,700 2. Keep old machine, NPV of purchasing the new machine is $(31,202). 3. $11,152 21-33 1. NPV $31,944 2. AARR 8.62% 21-34 2. No, NPV is $(28,702) 21-35 2. NPV $(1,116,210) 21-36 1. NPV $9,700 2. NPV $10,448 21-37 1. NPV $(42,560) 2. NPV $(62,136) 3. Should not purchase new cash register. 21-38 1. NPV $57,664 IRR 10% 2. For revenue of $240,000: NPV $(77,984) IRR 4.9% For revenue of $220,000: NPV $(213,632) IRR less than 2% 3a. For revenue of $240,000: NPV $ 69,722 IRR 10.61% 3b. For revenue of $220,000: NPV $(71,955) IRR 5.12% Cost Accounting 13e Check Figures...
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