Ex 19-15 Name:
Enter the appropriate amounts in the shaded cells in columns E and G.
1) Payback period = Investment / Annual net cash flow
Payback period = / =
Enter the appropriate amounts in the shaded cells in columns E and H. The cash flow in
year zero must be entered as a negative number.
2) Discount Present
Year Cash Flow Factor Value
0
1 – 10
NPV
Discount factor = Investment / Annual net cash flow
Discount factor = / =
Using the PV of annuity table, and the appropriate time period,
look up the factor above to find the IRR.
Enter the appropriate amounts in the shaded cells in columns E and G.
3) Payback period = Investment / Annual net cash flow
Payback period = / =
Enter the appropriate amounts in the shaded cells in columns E and H. The cash flow in
year zero must be entered as a negative number.
Discount Present
Year Cash Flow Factor Value
0
1 – 10
10
NPV
Discount factor = Investment / Annual net cash flow
Discount factor = / =
Using the PV of annuity table, and the appropriate time period,
look up the factor above to find the IRR.
Ex 19-15 Name:
Enter the appropriate amounts in the shaded cells in columns E and G.
1) Payback period = Investment / Annual net cash flow
Payback period = 9,000,000$
/
1,500,000$ = 6.00 years
2) Discount Present
Year Cash Flow Factor Value
0 (9,000,000)$ 1.000 (9,000,000)$
1 – 10 1,500,000 5.650 8,475,000
NPV (525,000)$
/
3) Payback period = Investment / Annual net cash flow
Payback period = 9,000,000$
/
1,800,000$ = 5.00 years
/
Discount factor = Investment / Annual net cash flow
SOLUTION
Ex 19-18 Name:
Enter the appropriate amounts in the shaded cells in columns D, F, and J.
Straight-line
Present
1) Year Depreciation x % tNC df Value
1 x
2 x
3 x
4 x
Total
2) MACRS
Present
Year Depreciation x % tNC df Value
1 x
2 x
3 x
4 x
Total
Ex 19-18 Name:
Enter the appropriate amounts in the shaded cells in columns D, F, and J.
Straight-line
Present
1) Year Depreciation x % tNC df Value
13,000$ x 40% 1,200$ 0.893 1,072$
2) MACRS
Present
Year Depreciation x % tNC df Value
16,000$ x 40% 2,400$ 0.893 2,143$
28,000 x40% 3,200 0.797 2,550
SOLUTION
Prob 19-26 Name:
Enter the appropriate amount in the shaded cells in columns D, F, H, J, and L. Be sure to use negative numbers where
appropriate.
1)
Present
Year (1 – t)R -(1 – t)C tNC CF df Value
0
1
2
3
4
5
6
NPV
2)
Present
Year (1 – t)R -(1 – t)C tNC CF df Value
0
1
2
3
4
5
6
NPV
Prob 19-26 Name:
Enter the appropriate amount in the shaded cells in columns D, F, H, J, and L. Be sure to use negative numbers where
appropriate.
1)
Present
Year (1 – t)R -(1 – t)C tNC CF df Value
0 ($50,000,000) 1.000 ($50,000,000)
1$6,000,000 ($14,400,000) $4,000,000 (4,400,000) 0.909 (3,999,600)
26,000,000 (14,400,000) 6,400,000 (2,000,000) 0.826 (1,652,000)
2)
Present
Year (1 – t)R -(1 – t)C tNC CF df Value
0 ($100,000,000) 1.000 ($100,000,000)
1$18,000,000 ($6,000,000) $8,000,000 20,000,000 0.909 18,180,000
218,000,000 (6,000,000) 12,800,000 24,800,000 0.826 20,484,800
SOLUTION
Prob 19-27 Name:
Enter the appropriate amount in the shaded cells in columns D and F.
1)
Discount Present
Year Cash Flow Factor Value
0
1
2
3
4
5
6
NPV
Discount Present
Year Cash Flow Factor Value
0
1
2
3
4
5
6337,500
NPV
Enter the appropriate amount in the shaded cells in columns F and H.
2) Proposal A payback period:
Cash Flow Period
First year years
Second year years
Investment years
Proposal B payback period:
Cash Flow Period
First year years
Second year years
Third year years
Fourth year years
Fifth year years
Investment years
Proposal A
Proposal B
Prob 19-27 Name:
Enter the appropriate amount in the shaded cells in columns D and F.
1)
Discount Present
Year Cash Flow Factor Value
0 ($250,000) 1.000 ($250,000)
1150,000 0.909 136,350
2125,000 0.826 103,250
Discount Present
Year Cash Flow Factor Value
0 ($312,500) 1.000 ($312,500)
1 (37,500) 0.909 (34,088)
2 (25,000) 0.826 (20,650)
2) Proposal A payback period:
Cash Flow Period
First year $150,000 1.00 years
Proposal B payback period:
Cash Flow Period
First year ($37,500) 1.00 years
Second year (25,000) 1.00 years
Proposal A
Proposal B
SOLUTION