Lesson #12-Cap Sheet

# 5 project b 950021000 02 950010500 project

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Unformatted text preview: B \$9,500/(\$21,000 + \$0)/2 = \$9,500/\$10,500 = Project C \$11,000/(\$21,000+\$1,000/2) =\$11,000/\$11,000 = 90.4% 100.0% Cash Payback Period = \$ invested/ Estimated Annual Cash Inflow Project A \$21,000/(\$10,500+\$6,000) = \$21,000/\$16,500 = 1.27 years Project B \$21,000/(\$9,500+\$7,000) = \$21,000/\$16,500 = 1.27 years Project C \$21,000/(\$11,000+\$6,667) = \$21,000/\$17,667 = Discounted Cash Flow Present Value of Future Cash Inflows: Project A: Years 1 to 3 Year 3 Residual Value 1.19 years Cash Inflow \$16,500 \$3,000 P.V. Factor 2.28323 0.65752 \$16,500 2.28323 \$37,673 \$21,000 \$16,673 \$17,667 \$1,000 2.28323 0.65752 \$40,338 \$658 Proj. C also has a residual value, so a one-time cash flow \$40,995 in year 3. One time cash flows us...
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## This document was uploaded on 04/07/2014.

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