An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Fill out the table in 1a completely, even after the payback period is reached.
1. a.
Initial investment:
Net Cash Cumulative Net Net Cash Cumulative Net
Flow Cash Flows Flow Cash Flows
Year 1
Year 2
Year 3
Year 4
Year 5
The Sound Cellar magazine achieves payback in
The Pro Gamer magazine achieves payback in
magazine is recommended, based on the cash payback period.
1. b.
Present
Value of Sound Pro Sound Pro
$1 at 10% Cellar Gamer Cellar Gamer
Present Value of
Sound Cellar
Pro Gamer
Net Present Value Analysis
Net Cash Flow
Problem 26(12)-2B
Name:
Section:
0%
Score:
Key Code:
[Key code here]
Answers are entered in the cells with gray backgrounds.
Net Cash Flow
Instructions
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Year 1
Year 2
Year 3
Year 4
Year 5
Total
2.
[Key essay answer here]
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Fill out the table in 1a completely, even after the payback period is reached.
1. a.
Initial investment:
Net Cash Cumulative Net Net Cash Cumulative Net
Flow Cash Flows Flow Cash Flows
Year 5 45,000 220,000 30,000 220,000
1. b.
Present
Value of Sound Pro Sound Pro
Problem 26(12)-2B
Name:
Solution
Section:
ON
Cells with non-gray backgrounds are protected and cannot be edited.
Score:
Instructions
Answers are entered in the cells with gray backgrounds.
Sound Cellar
Pro Gamer
$125,000
Net Cash Flow
Net Cash Flow
Present Value of
Net Present Value Analysis
$1 at 10% Cellar Gamer Cellar Gamer
2.
The report can take many forms and should include, as a minimum, the following points:
a. Both products offer the same total net cash flow.