acctg 213 ch 12 hw

acctg 213 ch 12 hw - Jeremy Liebman 950929750 Tomcal...

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Jeremy Liebman 950929750 Tomcal Chapter 12 Ex – 25, 26, 27, 28, 29, 30, 32, 34, 36, 38 25. 1. Marson blood analysis equipment: Year Cash Flow Discount Factor Present Value 0 $(200,000) 1.000 $(200,000) 1 $120,000 0.893 $107,160 2 $100,000 0.797 $79,700 3 $80,000 0.712 $56,960 4 $40,000 0.636 $25,440 5 $20,000 0.567 $11,340 NPV $80,600 Lawson blood analysis equipment: Year Cash Flow Discount Factor Present Value 0 $(200,000) 1.000 $(200,000) 1 $20,000 0.893 $17,860 2 $20,000 0.797 $15,940 3 $120,000 0.712 $85,440 4 $160,000 0.636 $101,760 5 $180,000 0.567 $102,060 NPV $123,060 2. CF = $323,060/3.605 CF = $89,614 per year Cash flow must exceed $89,614/year to be selected 26. 1. Payback period is 2.67 years. 2. ARR = ($300,000 – $160,000)/$800,000 or 17.5% 3. Year Cash Flow Discount Factor Present Value 0 $(800,000) 1.000 $(800,000) 1 $300,000 0.909 $272,700 2 $300,000 0.826 $247,800 3 $300,000 0.751 $225,300 4 $300,000 0.683 $204,900 5 $300,000 0.621 $186,300 NPV $337,000 4. IRR is between 24% and 26% because its discount factor is 2.67.
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acctg 213 ch 12 hw - Jeremy Liebman 950929750 Tomcal...

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