D & E

FINC 4352 - Intermediate Finance

Project 4

Capital Budgeting

Part 2: Capital Budgeting Analysis DJ Capital Budgeting Criterion Net Present Value (at 10%] = $5,165,182.00 IRR = 25.525 MIRR = 19 8495 Payback = 2.75 Discounted Payback = 3.23 Data for Payback Years 0 1 2 3 4 Net cash flow -$12,640,000 00 $4 370,800.00 $4,843,924 00 $4,576,441.72 $9,355,798.23 Cumulative CF -$12,640,000 00 $8 269,200.00 -$3,425,276.00 $1,151,165.72 $10,506,963.95 Data for Discounted Payback Years 0 1 2 3 4 Net cash flow $12,640,000.00 $4 370,800.00 $4,843,924.00 $4,576,441.72 $9,355,798.23 Discounted CF $12,640,000.00 $3,937,657.66 $3,931,437.38 $3,346,254.74 $6,162,954.08 Cumulative CF -$12,640,000.00 $8,702,342.34 $4,770,904.96 -$1,424,650.22 $4,738 303 87 Part 3: Risk Analysis [) Sensitivity Analysis Base Sales Price $24,000 00 15 Deviation from Base Case Sales Price NPV -509% $24,000 00 -25% 0% 2595 5095