Revised Shockley, Chapter 15 Problems:
Problem 1:
Figure 15.3:
Figure 15.4:
Figure 15.5:
Problem 2:
The cash flows should be evaluated as an annuity due rather than a regular annuity.
affected by rounding error.
Problem 3:
(-145,000)*24,871*(1 – 0.33) ÷ 1,000,000 = -$2,416.22
Problem 4:
2018 states:
{(95,000)*24,871 – $52 million}*(1 – 0.33) ÷ 1,000,000 = $1,548.20
2017 states:
Problem 5:
Problem 6:
2018 states:
{(-45,500)*24,871 – $44 million}*(1 – 0.33) ÷ 1,000,000 = -$787.67
2017 states:
{(-45,500)*20,363 – $44 million}*(1 – 0.33) ÷ 1,000,000 = -$650.25
Problem 7:
-$650.25 + (-$787.67*0.577 + (-$537.73)*0.423) ÷ (1.051) = -$1,299.10
Problem 8:
Max( -$2,416.22, -$787.67 – 22 + 6, $1,548.20 – 700 + 186) = $1,034.20
Problem 9:
Max( -1978 + ($1,034.20*0.577 + $512.33*0.423) ÷ 1.051, -$1,299.10 – 22 + 6,