Present value of $1 Periods 4% 1 2 3 4 5 6 7 8 19 10...

 

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Present value of $1 Periods 4% 1 2 3 4 5 6 7 8 19 10 Year 1 Year 2 Year 3 Year 4 Year 5 6% 10% 12% 8% 0.926 0.909 0.962 0.943 0.893 0.925 0.890 0.857 0.826 0.797 0.889 0.840 0.794 0.751 0.712 0.855 0.792 0.735 0.683 0.636 0.822 0.747 0.681 0.621 0.567 0.790 0.705 0.630 0.564 0.507 0.760 0.665 0.583 0.513 0.452 0.731 0.627 0.540 0.467 0.404 0.351 0.703 0.592 0.500 0.424 0.361 0.308 0.676 0.558 0.463 0.386 0.322 0.270 A. B. C. 10. Jimmy Reynolds is considering investing $12,000 in a project with the following cash revenues and expenses: Revenues $20,000 $22,000 Expenses $18,000 $19,000 $22,000 $20,000 $22,000 $17,000 $25,000 $17,000 Jimmy requires a minimum rate of return of 8%. 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 Calculate the net cash inflows in each of the 5 years. What is the payback period? What is the net present value of the investment? (Use table above) Present value of $1 Periods 4% 1 2 3 4 5 6 7 8 19 10 Year 1 Year 2 Year 3 Year 4 Year 5 6% 10% 12% 8% 0.926 0.909 0.962 0.943 0.893 0.925 0.890 0.857 0.826 0.797 0.889 0.840 0.794 0.751 0.712 0.855 0.792 0.735 0.683 0.636 0.822 0.747 0.681 0.621 0.567 0.790 0.705 0.630 0.564 0.507 0.760 0.665 0.583 0.513 0.452 0.731 0.627 0.540 0.467 0.404 0.351 0.703 0.592 0.500 0.424 0.361 0.308 0.676 0.558 0.463 0.386 0.322 0.270 A. B. C. 10. Jimmy Reynolds is considering investing $12,000 in a project with the following cash revenues and expenses: Revenues $20,000 $22,000 Expenses $18,000 $19,000 $22,000 $20,000 $22,000 $17,000 $25,000 $17,000 Jimmy requires a minimum rate of return of 8%. 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 Calculate the net cash inflows in each of the 5 years. What is the payback period? What is the net present value of the investment? (Use table above)

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A Year 1 20000 18000 2000 Year 2 22000 19000 3000 Year 3 22000 20... View the full answer