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
Year 2
Year 3
Total
Amount to be invested
Net present value
3.
Problem 26(12)-3A
Name:
Section:
[Key essay answer here]
Maintenance Equipment
Ramp Facilities
0%
[Key code here]
Net Present Value Analysis
Computer Network
Score:
Key Code:
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 $1 at 20% Flow Net Cash Flow Flow Net Cash Flow Flow Net Cash Flow
Year 1 0.833 4,000,000$ 3,332,000$ 12,000,000$ 9,996,000$ 6,000,000$ 4,998,000$
2. Present value index:
3.
Computer Network
Net Present Value Analysis
ON
The computer network has the largest present value index. Although ramp facilities has the largest net
Maintenance Equipment
Ramp Facilities
Problem 26(12)-3A
Name:
Solution
Section:
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Score:
Instructions
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