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1.
Present Value Net Cash Present Value of Net Cash Present Value of Net Cash Present Value of
of $1 at 20% Flow Net Cash Flow Flow Net Cash Flow Flow Net Cash Flow
Year 1
Year 2
Year 3
Total
Amount to be invested
Net present value
2. Present value index:
Total present value of net cash flow
Divided by amount to be invested
Present value index
3.
Key Code:
Instructions
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Problem 26-3A
Name:
Section:
[Key essay answer here]
New Maintenance Yard
Route Expansion
0%
[Key code here]
Answers are entered in the cells with gray backgrounds.
Net Present Value Analysis
Acquire Railcars
Score:
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
1.
Present Value Net Cash Present Value of Net Cash Present Value of Net Cash Present Value of
of $1 at 20% Flow Net Cash Flow Flow Net Cash Flow Flow Net Cash Flow
Year 1 0.833 5,000,000$ 4,165,000$ 10,000,000$ 8,330,000$ 5,000,000$ 4,165,000$
Year 2 0.694 4,000,000 2,776,000 9,000,000 6,246,000 4,000,000 2,776,000
Score:
Instructions
Answers are entered in the cells with gray backgrounds.
Acquire Railcars
Net Present Value Analysis
ON
New Maintenance Yard
Route Expansion
Problem 26-3A
Name:
Solution
Section:
Cells with non-gray backgrounds are protected and cannot be edited.