Calculator Solutions
7.
CFo–$26,000
C01 $11,000
F01 1
8.
CFo–$26,000 CFo–$26,000
C01 $11,000 C01 $11,000
F01 1F01 1
9.
CFo–$67,000 CFo–$67,000 CFo–$67,000
C01 $15,400 C01 $15,400 C01 $15,400
F01 9F01 9F01 9
CHAPTER 9 – 2
10.
CFo–$13,900
C01 $6,400
F01 1
11.
CFo–$13,900 CFo–$13,900
C01 $6,400 C01 $6,400
F01 1F01 1
CFo–$13,900 CFo–$13,900
C01 $6,400 C01 $6,400
F01 1F01 1
12. Project A
CFo–$43,500 CFo–$43,500
C01 $21,400 C01 $21,400
F01 1F01 1
C02 $18,500 C02 $18,500
$5,891.09
CHAPTER 9 – 3
Project B
CFo–$43,500 CFo–$43,500
C01 $6,400 C01 $6,400
F01 1F01 1
$7,467.80
Crossover rate
CFo$0
C01 $15,000
F01 1
13. Project X
CFo–$24,000 CFo–$24,000 CFo–$24,000
C01 $10,620 C01 $10,620 C01 $10,620
F01 1F01 1F01 1
CHAPTER 9 – 4
Project Y
CFo–$24,000 CFo–$24,000 CFo–$24,000
C01 $12,100 C01 $12,100 C01 $12,100
F01 1F01 1F01 1
Crossover rate
CFo$0
C01 –$1,480
F01 1
14.
CFo–$45,000,000 CFo–$45,000,000
CHAPTER 9 – 5
15.
CFo$0 CFo$0 CFo$0
C01 $9,400 C01 $9,400 C01 $9,400
F01 1F01 1F01 1
@10%: PI = $18,057.10 / $15,300 = 1.180
16. Project I
CFo$0 CFo–$51,000
Project II
CFo$0 CFo–$14,400
17.
CF(A) c. d. e.
CFo–$455,000 CFo–$455,000 CFo$0
C01 $58,000 C01 $58,000 C01 $58,000
F01 1F01 1F01 1
CHAPTER 9 – 6
CF(B) c. d. e.
CFo–$65,000 CFo–$65,000 CFo$0
C01 $31,000 C01 $31,000 C01 $31,000
F01 1F01 1F01 1
f. In this instance, the NPV criteria implies that you should accept Project A, while payback period,
18.
CFo–$638,400 CFo–$638,400
C01 $236,800 C01 $236,800
F01 1F01 1
26.
CFo$53,000 CFo$53,000 CFo$53,000
C01 –$29,000 C01 –$29,000 C01 –$29,000
F01 1F01 1F01 1
CHAPTER 9 – 7
CFo$53,000
C01 –$29,000
