Chapter 9
Question 15
Input area:
Annual cash flows:
Output area:
Chapter 9
Question 16
Input area:
Annual cash flows: III
Output area:
Using the profitability index to compare mutually exclusive
projects can be ambiguous when the magnitude of the cash
flows for the two projects are of different scale.
Year 0 (64,000)$ (18,000)$
Year 1 31,000$ 9,700$
Year 2 31,000$ 9,700$
Year 3 31,000$ 9,700$
Required return 10%
Chapter 9
Question 17
Input area:
Annual cash flows: A B
Output area:
Chapter 9
Question 18
Input area:
Annual cash flows:
Output area:
Chapter 9
Question 19
Input area:
Annual cash flows:
Output area:
Discounting approach:
Year CF
Chapter 9
Question 21
Input area:
Output area:
Chapter 9
Question 22
Input area:
Output area:
Chapter 9
Question 23
Input area:
Output area:
Chapter 9
Question 24
Input area:
.
Output area:
Annual cash flows:
Chapter 9
Question 25
Input area:
Output area:
Chapter 9
Question 26
Input area:
Annual cash flows:
Output area:
Chapter 9
Question 27
Input area:
Annual cash flows:
Output area:
It is possible that the cash flows do not
have an IRR. That is the case here.
There is no real root to the IRR equation.
Year 0 25,000$
Year 1 (11,000)$
Year 2 7,000$
Chapter 9
Question 28
Input area:
Annual cash flows:
Output area: