1. Prepare an equivalent Table 12.4 for Project B Payback Periods by Cumulative Discounted Cash Flows for CFBT, CFAL, and CFAT and determine the Project B Payback Periods by Cumulative Discounted Cash Flows for the CFBT, CFAL, and CFAT approaches. Are they different?

1. Prepare an equivalent Table 12.4 for Project B Payback Periods by Cumulative Discounted Cash Flows for CFBT, CFAL, and CFAT and determine the Project B Payback Periods by Cumulative Discounted Cash Flows for the CFBT, CFAL, and CFAT approaches. Are they different? Table 12.4: Project A payback periods by cumulative discounted cash flows for CFBT, CFAL, and CFAT Year Cash Flows Before Taxes Discounted CFBT Flows Cumulative Discounted CFBT Flows Cash Flows After Loan Discounted CFAL Flows Cumulative Discounted CFAL Flows Cash Flows After Taxes Discounted CFAT Flows Cumulative Discounted CFAT Flows 1 -50,000 -50,000 20,000 17,391 20,000 15,123 20,000 13,150 20,000 11,435 20,000 9,943 50,000 17,042 -50,000 -32,609 -17,486 -4,336 +7,099 +17,042 3 -30,000 11,958 11,958 11,058 20,000 20,000 45,973 -30,000 -30,000 10,398 -19,602 9,042 -10,560 7,862 -2,698 11,435 +8,737 9,944 +18,681 18,681 -30,000 11,424 13,406, 7,212 13,482 12,000 27,524 -30,000 9,934 10.137 4,742 7,708 5,966 8,487 -30,000 -20,066 -9.929 -5,187 | +2,521 +8,487 5 Total Table 12.1: Cash flows of additive manufacturing project (Project A) Depreciation Revenue Expanse Flow Flow Loan Interest Amount Taxable Income Taxes Paid Total Cash Net Profits Rate Amount Flow Profits (0) LI(C) 0 0 Cash Loan Flow Before Cash Flow Taxes CFBT(0) LCF(0) -50,000 20,000 20,000 -8,042 20,000 -8,042 20,000 -8,042 20,000 0 20,000 0 50,000 4,127 Rt) 0 5 0,000 50,000 50,000 50,000 50,000 250,000 Cash Flow After Loan CFALO -30,000 11,958 1 1,958 11,958 20,000 20,000 45,873 Et) 50,000 30,000 30,000 30,000 30,000 30,000 200,000 1 2 Cash Flow After Taxes CEAT(0) -30,000 11,424 13,406 7,212 13,482 12,000 27,524 DR(0) Du) 0 33.33 16,665 44.45 22,225 14.817 ,405 7.413 ,705 0.00 0 100 50,000 TIC) 0 1,335 -3,621 11,864 16,295 20,000 45,873 2,000 1,396 731 0 Cumulative Total Discounted Discounted Net Net Cash Net Profits Flow CFAT Profits BOC) Profits Flows-AT CEAT(C) ENPO). 0 0 -30,000 -30,000 0 801 697 9 ,934 -20,066 697 -1,371 -1,643 10,137 -9,929 -946 5,7474 ,680 4,742 -5,187 3 ,734 15,524 5,590 7,708 2,521 9,324 27,524 5,9665 ,9668 ,487 15,290 15,290 8,487 TPC) 0 5 34 -1,448 4 ,746 6,518 8,000 18,349 CFATONPO) -30,000 0 -18,576 801 -5,170 -2,172 2,042 7,118 15,524 9,777 27,524 12,000 27,524 3 4 500 5 Totals 4,127 Table 12.2: Cash flows of computer security project (Project B) Depreciation End of Year Revenue Expanse Flow Flow Cash Flow Before Loan Cash Flow Cash Flow After Loan Interest Amount Taxable Income Taxes Paid Cash Flow After Total Cash Flow Net Profits Total Net Profits Taxes Loan Rate Amount Taxes Profits (t) 0 R/t) 0 30,000 30,000 30,000 30,000 30,000 30,000 180,000 E( D C FBT(0) 50,000 50,000 12,000 18,000 12,000 18,000 12,000 18,000 12,000 18,000 12,000 18,000 12,000 18,000 122,000 58,000 LCF) 25,000 -7,887 -7,887 -7,887 -7,887 0 0 -6,547 CFAL(C) -25,000 10,113 10,113 10,113 10,113 18,000 18,000 51,453 LI(C) 0 2,500 1,961 1.369 717 DR(t) 0 20.00 32.00 19.20 11.52 11.52 5.76 100.00 D(E) 0 10,000 16,000 9,600 5,760 5,760 2,880 50,000 TI(C) 0 5,500 39 7,031 11,523 12,240 15,120 51,453 TP(t) 0 2,200 15 2,812 4,609 4,896 6,048 20,581 CFAT(6) ECFATO -25,000 -25,000 7 ,913 -17,087 10,098 -6,989 7.301 312 5,504 5,816 13,104 1 8,920 11,952 30,872 30,872 NPC) 0 3,300 23 4,219 6 ,914 7,344 9,072 30,872 BO(C) 0 3,300 3,323 7,542 14,456 21,800 30,872 Cumulative Discounted Discounted Net Cash Net CFAT Profits Flow Profits Flows-AT ZCFAT(t) ENP(t). 0 -25,000 -25,000 2 ,870 6 ,881 -18,1192 ,870 18 7,635 -10,484 2.887 2,774 4.800 -5,683 5,661 3,953 3,147 -2,536 3,651 6,515 3,979 13,265 3,922 5,167 9,146 17,187 17,187 9,146 9,614 12.2. PAYBACK PERIOD Totals 6,547 1. Prepare an equivalent Table 12.4 for Project B Payback Periods by Cumulative Discounted Cash Flows for CFBT, CFAL, and CFAT and determine the Project B Payback Periods by Cumulative Discounted Cash Flows for the CFBT, CFAL, and CFAT approaches. Are they different? Table 12.4: Project A payback periods by cumulative discounted cash flows for CFBT, CFAL, and CFAT Year Cash Flows Before Taxes Discounted CFBT Flows Cumulative Discounted CFBT Flows Cash Flows After Loan Discounted CFAL Flows Cumulative Discounted CFAL Flows Cash Flows After Taxes Discounted CFAT Flows Cumulative Discounted CFAT Flows 1 -50,000 -50,000 20,000 17,391 20,000 15,123 20,000 13,150 20,000 11,435 20,000 9,943 50,000 17,042 -50,000 -32,609 -17,486 -4,336 +7,099 +17,042 3 -30,000 11,958 11,958 11,058 20,000 20,000 45,973 -30,000 -30,000 10,398 -19,602 9,042 -10,560 7,862 -2,698 11,435 +8,737 9,944 +18,681 18,681 -30,000 11,424 13,406, 7,212 13,482 12,000 27,524 -30,000 9,934 10.137 4,742 7,708 5,966 8,487 -30,000 -20,066 -9.929 -5,187 | +2,521 +8,487 5 Total Table 12.1: Cash flows of additive manufacturing project (Project A) Depreciation Revenue Expanse Flow Flow Loan Interest Amount Taxable Income Taxes Paid Total Cash Net Profits Rate Amount Flow Profits (0) LI(C) 0 0 Cash Loan Flow Before Cash Flow Taxes CFBT(0) LCF(0) -50,000 20,000 20,000 -8,042 20,000 -8,042 20,000 -8,042 20,000 0 20,000 0 50,000 4,127 Rt) 0 5 0,000 50,000 50,000 50,000 50,000 250,000 Cash Flow After Loan CFALO -30,000 11,958 1 1,958 11,958 20,000 20,000 45,873 Et) 50,000 30,000 30,000 30,000 30,000 30,000 200,000 1 2 Cash Flow After Taxes CEAT(0) -30,000 11,424 13,406 7,212 13,482 12,000 27,524 DR(0) Du) 0 33.33 16,665 44.45 22,225 14.817 ,405 7.413 ,705 0.00 0 100 50,000 TIC) 0 1,335 -3,621 11,864 16,295 20,000 45,873 2,000 1,396 731 0 Cumulative Total Discounted Discounted Net Net Cash Net Profits Flow CFAT Profits BOC) Profits Flows-AT CEAT(C) ENPO). 0 0 -30,000 -30,000 0 801 697 9 ,934 -20,066 697 -1,371 -1,643 10,137 -9,929 -946 5,7474 ,680 4,742 -5,187 3 ,734 15,524 5,590 7,708 2,521 9,324 27,524 5,9665 ,9668 ,487 15,290 15,290 8,487 TPC) 0 5 34 -1,448 4 ,746 6,518 8,000 18,349 CFATONPO) -30,000 0 -18,576 801 -5,170 -2,172 2,042 7,118 15,524 9,777 27,524 12,000 27,524 3 4 500 5 Totals 4,127 Table 12.2: Cash flows of computer security project (Project B) Depreciation End of Year Revenue Expanse Flow Flow Cash Flow Before Loan Cash Flow Cash Flow After Loan Interest Amount Taxable Income Taxes Paid Cash Flow After Total Cash Flow Net Profits Total Net Profits Taxes Loan Rate Amount Taxes Profits (t) 0 R/t) 0 30,000 30,000 30,000 30,000 30,000 30,000 180,000 E( D C FBT(0) 50,000 50,000 12,000 18,000 12,000 18,000 12,000 18,000 12,000 18,000 12,000 18,000 12,000 18,000 122,000 58,000 LCF) 25,000 -7,887 -7,887 -7,887 -7,887 0 0 -6,547 CFAL(C) -25,000 10,113 10,113 10,113 10,113 18,000 18,000 51,453 LI(C) 0 2,500 1,961 1.369 717 DR(t) 0 20.00 32.00 19.20 11.52 11.52 5.76 100.00 D(E) 0 10,000 16,000 9,600 5,760 5,760 2,880 50,000 TI(C) 0 5,500 39 7,031 11,523 12,240 15,120 51,453 TP(t) 0 2,200 15 2,812 4,609 4,896 6,048 20,581 CFAT(6) ECFATO -25,000 -25,000 7 ,913 -17,087 10,098 -6,989 7.301 312 5,504 5,816 13,104 1 8,920 11,952 30,872 30,872 NPC) 0 3,300 23 4,219 6 ,914 7,344 9,072 30,872 BO(C) 0 3,300 3,323 7,542 14,456 21,800 30,872 Cumulative Discounted Discounted Net Cash Net CFAT Profits Flow Profits Flows-AT ZCFAT(t) ENP(t). 0 -25,000 -25,000 2 ,870 6 ,881 -18,1192 ,870 18 7,635 -10,484 2.887 2,774 4.800 -5,683 5,661 3,953 3,147 -2,536 3,651 6,515 3,979 13,265 3,922 5,167 9,146 17,187 17,187 9,146 9,614 12.2. PAYBACK PERIOD Totals 6,547