FCF 9th edition Chapter 09

# FCF 9th edition Chapter 09 - Chapter 9 Problems 1-28 Input...

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Chapter 9 Problems 1-28 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-In" be installed in Excel. To install these, click on the Office button then "Excel Options," "Add-Ins" and select "Go." Check "Analyis ToolPak" and "Solver Add-In," then click "OK."

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Chapter 9 Question 1 Input area: Year Cash flow 0 \$(6,400) 1 1,600 2 1,900 3 2,300 4 1,400 Output area: Payback period 3.43 A B C D E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Chapter 9 Question 2 Input area: Annual cash inflow \$765 # of years 8 Initial cost \$2,400 Output area: Payback period 3.14

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Chapter 9 Question 3 Input area: Year Cash Flow (A) Cash Flow (B) 0 \$(40,000) \$(60,000) 1 19,000 14,000 2 25,000 17,000 3 18,000 24,000 4 6,000 270,000 Required payback 3 Output area: Project A Payback 1.840 Project A Accept Project B Payback 3.019 Project B Reject
Chapter 9 Question 4 Input area: Annual cash inflows: Year 1 \$4,200 Year 2 5,300 Year 3 6,100 Year 4 7,400 Discount rate 14% Initial cost \$13,000 Output area: Discounted payments: Year 1 \$3,684.21 Year 2 \$4,078.18 Year 3 \$4,117.33 Year 4 \$4,381.39 Payback period 3.26

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Chapter 9 Question 5 Input area: Initial cost \$15,000 Annual cash flow \$4,300 # of years 6 Discount rate 0% . Output area: Year 0 \$(15,000.00) 1 4,300.00 2 4,300.00 3 4,300.00 4 4,300.00 5 4,300.00 6 4,300.00 Payback period 3.49 Discounted Cash Flow
Chapter 9 Question 6 Input area: Installation cost \$15,000,000 # of years 4 Projected net income: Year 0 \$1,938,200 Year 1 \$2,201,600 Year 2 \$1,876,000 Year 3 \$1,329,500 . Output area: Average net income \$1,836,325 Average book value \$7,500,000 AAR 24.48%

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Chapter 9 Question 7 Input area: Required Return 16% Annual cash flows: Year 0 \$(34,000) Year 1 \$16,000 Year 2 \$18,000 Year 3 \$15,000 . Output area: IRR 20.97% Accept/Reject Accept
Chapter 9 Question 8 Input area: Required Return 11% Required Return 30% Annual cash flows: Year 0 \$(34,000) Year 1 \$16,000 Year 2 \$18,000 Year 3 \$15,000 . Output area: NPV at 11% \$5,991.49 Accept./Reject Accept NPV at 30% \$(4,213.93) Accept/Reject Reject

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Chapter 9 Question 9 Input area: Annual cash flows \$28,500 # of years 9 Costs \$138,000 Required Return 20% .
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FCF 9th edition Chapter 09 - Chapter 9 Problems 1-28 Input...

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