Autolave Flo Home Insert Draw Page Layout Formulas Workbook (1) Data Review View Search(+1 X Cut...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Autolave Flo Home Insert Draw Page Layout Formulas Workbook (1) Data Review View Search(+1 X Cut Calibr 12 A A = -4 Copy- Pave BU A Format Painter 54 Unde A 1 Assignment 5-2, Question 1 Clipboard Font Wrap Text General Merge & Center $% 92 Alignment Number Sx B C D E F G H Comments Share Normal Autosum Bad Good Conditional Format as Neutral Calculation Formatting-Table- Check Cell insert Delete Format FI Sort & Find & Analyze Clear - Fiber-Select Data 16 Styles Eating Any K L M N P Q R 2 3 a. 4 5 Net Present Value (NPV): 7 NPVX- -$10,000 + S + $ $ 8 9 10 11 12 NPV- S $10,000 S $ ' $ + $ 13 14 15 Internal Rate of Return (IRR): 16 17 To solve for each project's IRR, find the discount rates that equate each NPV to zero: 18 19 20 IRR IRRY % % 21 22 23 Modified Internal Rate of Return (MIRR): 24 25 To obtain each project's MIRR, begin by finding each project's terminal value (TV) of cash inflows: 26 27 TVx 28 29 TVy - $6,500 (1.12)^3 - $ + $ + S + S + $1,000 - $ + $ + $3,500 - $ 30 31 Now, each project's MIRR is the discount rate that equates the PV of the TV to each project's cost, $10,000: 32 33 34 MIRR MIRRY = % % 35 36 37 Profitability Index (PI): 38 39 -10 - 41 -12 - 43 44 - 45 + Cost of X $10,000 - $ PVY NPVy + Cost of Y - $ + $ $ + To obtain each project's Pl, divide its present value of future cash flows by its initial cost. The PV of future cash flows can be found from the NPV calculated earlier: PVX NPVx $ 46 47 48 Plx = PVx 45 Cost of X 49 = $ + $ 50 51 Ply = 52 = PVY $ + Cost of Y $ = 53 54 55 56 57 3-1 Question 1 3-1 Question 2 3-1 Question 3 5.2 Question 1 Ready Arreseilly Investigate 115% Autolave Flo Home Insert Draw Page Layout Formulas Workbook (1) Data Review View Search(+1 X Cut Calibr 12 A A = -4 Copy- Pave BU A Format Painter 54 Unde A 1 Assignment 5-2, Question 1 Clipboard Font Wrap Text General Merge & Center $% 92 Alignment Number Sx B C D E F G H Comments Share Normal Autosum Bad Good Conditional Format as Neutral Calculation Formatting-Table- Check Cell insert Delete Format FI Sort & Find & Analyze Clear - Fiber-Select Data 16 Styles Eating Any K L M N P Q R 2 3 a. 4 5 Net Present Value (NPV): 7 NPVX- -$10,000 + S + $ $ 8 9 10 11 12 NPV- S $10,000 S $ ' $ + $ 13 14 15 Internal Rate of Return (IRR): 16 17 To solve for each project's IRR, find the discount rates that equate each NPV to zero: 18 19 20 IRR IRRY % % 21 22 23 Modified Internal Rate of Return (MIRR): 24 25 To obtain each project's MIRR, begin by finding each project's terminal value (TV) of cash inflows: 26 27 TVx 28 29 TVy - $6,500 (1.12)^3 - $ + $ + S + S + $1,000 - $ + $ + $3,500 - $ 30 31 Now, each project's MIRR is the discount rate that equates the PV of the TV to each project's cost, $10,000: 32 33 34 MIRR MIRRY = % % 35 36 37 Profitability Index (PI): 38 39 -10 - 41 -12 - 43 44 - 45 + Cost of X $10,000 - $ PVY NPVy + Cost of Y - $ + $ $ + To obtain each project's Pl, divide its present value of future cash flows by its initial cost. The PV of future cash flows can be found from the NPV calculated earlier: PVX NPVx $ 46 47 48 Plx = PVx 45 Cost of X 49 = $ + $ 50 51 Ply = 52 = PVY $ + Cost of Y $ = 53 54 55 56 57 3-1 Question 1 3-1 Question 2 3-1 Question 3 5.2 Question 1 Ready Arreseilly Investigate 115%
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: a. Prepare a multiple-step income statement for the year...
-
Draw Fischer projections of the following molecules, placing the carbonyl group at the top in the usual way. Identify each as a D or Lsugar. (b) la)
-
Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $30 million. At the end of 2014, accounts receivable were presented in the companys balance...
-
Four years ago, based on a pre-tax NPV analysis, Harper Inc. decided to add new equipment with a cost of \(\$ 85,000\), allowing the company to expand its product offerings. The data used in the...
-
The Thiel Company reports the following deferred tax items at the end of 2007: Required Show how the preceding deferred tax items are reported on the Thiel Companys December 31, 2007 balancesheet....
-
2 (1 point) Accounts Payable $45,000 Cost of Goods Sold 230,000 Gain on Sale of Equipment 15,000 General and Admin Expense 160,000 Loss from Discontinued Ope 10,500 Salaries Payable 20,000 Tax...
-
A mid-level manager at Fran-Tech, a Seattle software company, received a CD-ROM set containing the source code for a competitors software product. The competitor is the market leader in the software...
-
Let f(x) = x-11 and g(x) = 11-x. Perform the composition or operation indicated. H(-5) (-5) H(-5) (-5)= (Simplify your answer. Type an integer or a fraction.)
-
A runner traveling at 5 m/s begins to accelerate at 1 m/s2 for 4 seconds. Without the acceleration, the runner would have ran only during those 4 seconds; however, the acceleration added an extra m. I
-
Factor by grouping. 4x 2 4x +5x-28x-35
-
Find (1-A)-1 for the given matrix A. A= -- - 3 2 4 3 (-A)=(Simplify your answer.)
-
Solve. 7-421- 4>
-
2. Mark the true statement. The aim of Microelectronics is the study and implementation of analog and digital circuits by using very tiny discrete components (resistors, capacitors, transistors...)....
-
Suppose that the laptop of Prob. 2.16 is placed in an insulating briefcase with a fully charged battery, but it does not go into sleep mode, and the battery discharges as if the laptop were in use....
-
Are there any limits to how little inventory a company should carry? Is it possible to entirely eliminate all inventories?
-
How can innovative uses of IT to perform expenditure cycle activities also be used to improve the efficiency and effectiveness of suppliers revenue cycle activities? Why might a company wish to help...
-
George Edmonds, the new accountant for Zigler Company, has recommended the preparation of income statements reporting contribution margin rather than statements reporting gross profit. He states that...
Study smarter with the SolutionInn App