Question
NPV With Uneven Cash Flows Present Value of $1 at Compound Interest 4.0% 4.50% 5.0% 5.50% 6.0% 6.50% 7.0% 7.50% 8.0% 0.96154 0.95694 0.95238 0.94787
NPV With Uneven Cash Flows Present Value of $1 at Compound Interest 4.0% 4.50% 5.0% 5.50% 6.0% 6.50% 7.0% 7.50% 8.0% 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 0.93023 0.92593 0.92456 0.91573 0.90703 0.89845 0.89000 0.88166 0.87344 0.86533 0.85734 0.88900 0.87630 0.86384 0.85161 0.83962 0.82785 0.81630 0.80496 0.79383 0.85480 0.83856 0.82270 0.80722 0.79209 0.77732 0.76290 0.74880 0.73503 0.74726 0.72988 0.71299 0.69656 0.68058 0.70496 0.68533 0.66634 0.64796 0.63017 0.75992 0.73483 0.71068 0.68744 0.66506 0.64351 0.62275 0.60275 0.58349 Periods 1 2 3 4 5 6 0.79031 0.76790 0.74622 0.72525 7 8 0.73069 0.70319 0.67684 0.65160 0.62741 0.60423 0.58201 0.56070 0.54027 0.82193 0.80245 0.78353 0.76513 9 0.70259 0.67290 0.64461 0.61763 0.59190 0.56735 0.54393 0.52158 0.50025 10 0.67556 0.64393 0.61391 0.58543 0.55839 0.53273 0.50835 0.48519 0.46319 Present Value of an Annuity of $1 at Compound Interest Periods 4.0% 4.50% 1 2 3 5.0% 5.50% 6.0% 6.50% 7.0% 7.50% 0.96154 0.95694 0.95238 8.0% 0.94787 0.94340 0.93897 0.93458 0.93023 0.92593 1.88609 1.87267 1.85941 1.84632 1.83339 1.82063 1.80802 1.79557 1.78326 2.77509 2.74896 2.72325 2.69793 2.67301 2.64848 2.62432 2.60053 2.57710 4 3.62990 3.58753 3.54595 3.50515 3.46511 3.42580 3.38721 3.34933 3.31213 5 6 7 8 9 10 4.45182 4.38998 4.32948 427028 4.21236 4.15568 4.10020 4.04588 3.99271 5.24214 5.15787 5.07569 4.99553 4.91732 4.84101 4.76654 4.69385 6.00205 5.89270 5.78637 5.68297 5.58238 5.48452 5.38929 5.29660 5.20637 4.62288 6.73274 6.59589 6.46321 6.33457 6.20979 6.08875 5.97130 5.85730 5.74664 7.43533 7.26879 7.10782 6.95220 6.80169 6.65610 6.51523 6.37889 6.24689 8.11090 7.91272 7.72173 7.53763 7.36009 7.18883 7.02358 6.86408 6.71008 Forecasted Cost information, Annual Accounting Income, and Annual Cash F for a project under consideration are below: Life 3 years Cost $500,000 Residual $0 Year Accounting Income Cash Flow 1 $32,833 A $199,500 2 $21,433 $188,100 3 $15,733 $182,400 Total $69,999 $570,000 Complete the table below to calculate NPV and determine if the analysis indicates that the project should be accepted or rejected. The Desired RATE OF RETURN IS 8.0% Use the Present Value tables and forecast information provided above. Make sure you complete ALL drop-downs. Use the Present Value tables and foreca Make sure you complete ALL drop-downs. Round numbers to the nearest dollar. Year $ 2 S PV Factor 0.92593 Present Value S S Total Less: enter as negative NPV Accept or Reject Project Internal Rate of Return (IRR) is 30 5 Previous
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