Dunlovic umer Problem, 10-7. Start - Excel Page Layout Formulas Rew Home mert Draw Walet Custom Times New Roman 14 Paste G A $ - % Conditional Format Cell Formatting We Styles Numb Ciobid Font 626 X 1 A D 1 Problem 10-7 2 Net present value. Independent projects Using a 14% cost of capital, calculate the net present value for each of the independent projects shown in the following table, and indicate whether each is acceptable. a 4 5 1 8 10 11 12 13 14 Project A Project B Project C Project D Projecte Initial investments 26,000 S 500,000 $ 170,000 $ 950,000 $ 80.000 Year Cash inflows 1 s 4,000 $ 100,000 $20,000 $ 230,000 $ 2 4,000 120.000 19.000 230,009 3 4.000 140.000 18,000 230.000 4 4,000 160,000 17.000 230,000 20,000 3 4.000 180.000 16.000 230,000 30,000 6 4.000 200.000 15,000 230,000 7 4,000 14,000 230,000 50.000 8. 4.000 13,000 230,000 60.000 9 4.000 12.000 70.000 10 4.000 11.000 15 16 17 B 19 Solution Problem 10.7 Hilustrations My Add-ins Koco Charts Pivot Table Recommended Table Pivot Tables Add-ins Tables E26 F LAB D 4,000 11,000 1 10 18 19 Solution 20 21 22 Project A Discount rate Number of years 23 14% 10 -$ 26,000 4,000 CFo CF 1-10 25 26 27 28 PV of cash inflows NPV of project A The project will be 29 30 Project B Discount rate 31 CF 32 33 CF: 34 14% -S 500,000 S 100,000 $ 120,000 $ 140,000 $ 160,000 S 180.000 S 200.000 CF2 CF CF4 CFS 35 36 37 38 CF 39 40 PV of cash inflows NPV of project B The project will be 41 42 Problem 10-7 Read DU Els Get Add in Illustrations My Addins A+ Recomm Char Pivot Table Recommended Table Pivottables Add-ins Tables E26 X for D AB 43 Project C 44 Discount rate 45 46 47 CF2 48 CF CF CF 49 CFA 14% $ 170,000 $ 20,000 $ 19,000 $ 18,000 $ 17,000 $ 16,000 $ 15,000 $ 14,000 $ 13,000 $ 12,000 S 11,000 50 51 52 CFS CF6 CF CFs CF CF 19 53 54 57 PV of cash inflows NPV of project C The project will be 8 8 8 8 8 8 8 8 8 8 8 8 61 Project D Discount rate Number of years 14% 8 -S 950.000 S 230,000 CF CF 1-3 PV of cash inflows NPV of project D The project will be Problem 10-7 Ready Stations Pivot Table Recommended Table Pivot Tables My Add-ins Tables Add-ins E26 for AB C The project will be 67 68 69 TO Project E Discount rate CF. 71 72 CF 73 CF2 74 75 14% -$ 80,000 $ $ S $ 20,000 $ 30,000 S S 50,000 $ 60,000 S 70,000 CF3 CF4 CF5 CF6 CF1 CFS 76 77 78 79 80 CFO 81 82 PV of cash inflows NPV of project E The project will be 83 84 85 86 Requirements 1 In cell E 26, by using cell references to the given data an present value of the cash inflows for project A. Note: T 87
