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Period 0 1 2 3 4 5 6 7 Project A Investment $ (10,000) Cash Flows $ 2,000 $ 2,000 $ 4,000 $ 4,000 $
| Period | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | |
| Project | |||||||||
| A | Investment | $ (10,000) | |||||||
| Cash Flows | $ 2,000 | $ 2,000 | $ 4,000 | $ 4,000 | $ 6,000 | $ 6,000 | $ 6,000 | ||
| $ (10,000) | $ 2,000 | $ 2,000 | $ 4,000 | $ 4,000 | $ 6,000 | $ 6,000 | $ 6,000 | ||
| B | Investment | $ (10,000) | |||||||
| Cash Flows | $ 5,000 | $ 4,000 | $ 3,000 | $ 3,000 | $ 2,000 | $ 1,000 | $ 1,000 | ||
| $ (10,000) | $ 5,000 | $ 4,000 | $ 3,000 | $ 3,000 | $ 2,000 | $ 1,000 | $ 1,000 | ||
| Point Value | |||||||||
| 1 | 7 | For "A" above, calculate the Net Present Value using a 20% discount rate. | |||||||
| 2 | 7 | For "B" above, calculate the Net Present Value using a 20% discount rate. | |||||||
| 3 | 7 | For "A" above, calculate the Internal Rate of Return. | |||||||
| 4 | 7 | For "B" above, calculate the Internal Rate of Return. | |||||||
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Analysis for Financial Management
Authors: Robert C. Higgins
12th edition
1259918963, 9781260140729 , 978-1259918964
