Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How does this person calculate the NVP IRR and DPP? I really dont get their math or the required equations. CAPITAL BUDGET ANALYSIS Initial Investment

How does this person calculate the NVP IRR and DPP? I really dont get their math or the required equations.

image text in transcribed
CAPITAL BUDGET ANALYSIS Initial Investment Pao ject Cost $105,600,000 OCE EBIT $19,008,000 00 $19,008,000 00 $19,008,000 00 $19,008,000 00 $19,008,000 00 $19,008,000 00 $19,008,000 00 $19,008,000 00 $19,008,000 00 $19,008,000 00 $19,008,000 00 $19,008,000 00 -Taxes $6,652,800 00 $6,652,800 00 $6,652,800 00 $6,652,800 00 $6,652,800 00 $6,652,800 00 $6,652,800 00 $6,652,800 00 $6,652,800 00 $6,652,800 00 $6,652,800 00 NOPAT $6,652,800 00 $12,355,200 DO $12,355,200 00 $12,355,200 00 $12,355,200 DO $12 355,200 00 $12,355,200 00 $12,335,200 00 $12,355,200 00 $12,355,200 00 $12,355,200 00 $12,355,200 00 $12,355,200 00 Depreciation $8,800,000 00 $8,800,000 00 $8,800,000 00 $8,800,000 00 $8,800,000 00 $8,800,000 00 $8,800,000 00 $8,800,000 00 $8,800,000 00 $8,800,000 DO $8,800,000 00 $8,800,000 DO OCF $2 1,155,200 00 $2 1,155,200 00 $2 1, 155,200 00 $2 1, 155,200 DO $21,155,200 00 $2 1, 155,200 00 $2 1, 155,200 00 $21,155,200 00 $2 1, 155,200 00 $21,155,200 00 $21,155,200 00 $2 1,155,200 00 Terminal Cash flow Salvage value $5,280,000 00 Tax $ 1,848,000 00 Salvage value after tax $3,432,000 00 NPV Analysis Project cash flows -$105,600,000 00 $21,155,200 00 $21,155,200 00 $21,155,200 DO $21,155,200 00 $21,155,200 00 $21,155,200 00 $21,155,200 DO $21,155,200 DO $2 1,155,200 00 $21,155,200 DO $21,155,200 00 $24,587,200 00 PV of cash flows -$105,600,000 00 $19,626,310 42 $18,207,913 92 $16,892,025 16 $15,671,235 89 $14,538,673 24 $13,487,961 07 $12,513,184 04 $1 1,608,854 29 $10,769,880 59 $9,991,539 65 $9,269,449 53 $9,994,645 87 NPY $56,971,67368 IRR Cummu lative Discounted cash flows $105.600,000 00 -$85,973,689 58 567,765,775 66 -$50,873,750 49 -$35,202 51461 -520,663,841 36 -$7,175,880 29 $5,337,303.75 $16,946,158 04 Discounted Payback Period 5.426534424 $27,716,038 63 $37,707,578 28 $46,977,027 81 $56,971,673 68

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

8th Canadian Edition

111950242X, 1-119-50242-5, 978-1119502425

More Books

Students also viewed these Accounting questions

Question

Finance Question 1 Can you answer the last part please

Answered: 1 week ago

Question

1. To generate a discussion on the concept of roles

Answered: 1 week ago