Chapter 9
Problems 1-28
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
1
2
3
4
5
B C D E
Chapter 9
Question 1
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Chapter 9
Question 2
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Output area:
Chapter 9
Question 4
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Output area:
Discounted payments:
Annual cash inflows:
Chapter 9
Question 5
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Output area:
Discounted
Chapter 9
Question 6
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Output area:
Projected net income:
Chapter 9
Question 7
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.
Output area:
Annual cash flows:
Chapter 9
Question 8
Input area:
Required Return 11%
.
Output area:
Required Return 25%
Annual cash flows:
Year 0 (28,000)$
Year 1 12,000$
Year 2 15,000$
Year 3 11,000$
Chapter 9
Question 9
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Output area:
Chapter 9
Question 10
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Output area:
Annual cash flows:
Chapter 9
Question 11
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Annual cash flows:
.
Output area:
Year 0 (16,400)$
Year 1 7,100$
Year 2 8,400$
Year 3 6,900$
Discount rate 0%
Discount rate 10%
Discount rate 20%
Discount rate 30%
Chapter 9
Question 12
Input area:
Annual cash flows: A B
Output area:
Chapter 9
Question 13
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Annual cash flows: X Y
Output area:
Chapter 9
Question 14
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Output area:
When there are multiple IRRs, the IRR
decision rule is ambiguous; in this case,
if the correct IRR = 39.48%, then we
would accept the project, but if the
correct IRR is -77.94%, we would reject
the project.
Annual cash flows:
Year 0 (39,000,000)$
Year 1 63,000,000$
Year 2 (12,000,000)$
Required return 12%