calculate the NPV, annuity equivalent NPV, Modified Internal Rate of Return. Table A2. Dairy assessment cash flows

calculate the NPV, annuity equivalent NPV, Modified Internal Rate of Return.

 

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Table A2. Dairy assessment cash flows Total Cash Total Cash Year Revenue Expense Salvage Value 1 $1,093,219 $882,700 Taxes $13,044 Net Cash Flow $197,475 2 $1,062,745 $914,629 ($54,294) $202,410 3 $1,112,666 $821,761 $19,129 $271,776 4 $1,177,765 $876,264 $31,966 $269,535 5 $1,236,985 $932,980 $37,547 $266,458 6 $1,247,510 $956,304 $51,435 $239,771 7 $1,309,652 $1,016,783 $70,385 $222,484 8 $1,318,944 $1,042,202 $64,740 $212,002 9 $1,381,508 $1,106,680 $64,071 $210,757 10 $1,395,588 $1,134,347 $835,000 $351,565 $744,676 Total initial investment - $1,700,000 Taxes already account for depreciation expense. Table A2. Dairy assessment cash flows Total Cash Total Cash Year Revenue Expense Salvage Value 1 $1,093,219 $882,700 Taxes $13,044 Net Cash Flow $197,475 2 $1,062,745 $914,629 ($54,294) $202,410 3 $1,112,666 $821,761 $19,129 $271,776 4 $1,177,765 $876,264 $31,966 $269,535 5 $1,236,985 $932,980 $37,547 $266,458 6 $1,247,510 $956,304 $51,435 $239,771 7 $1,309,652 $1,016,783 $70,385 $222,484 8 $1,318,944 $1,042,202 $64,740 $212,002 9 $1,381,508 $1,106,680 $64,071 $210,757 10 $1,395,588 $1,134,347 $835,000 $351,565 $744,676 Total initial investment - $1,700,000 Taxes already account for depreciation expense.

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Solution To calculate the NPV annuity equivalent NPV and Modified Internal Rate of Return MIRR of the dairy assessment cash flows we need to first cal... View the full answer