Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls help Capital invested: 4,000____________Cost of Capital (COC) is+ 3.5___%. Cut Off period is 3__ years. Compute PB, DPB, NPV, PI, and IRR. Use your

pls help

Capital invested: 4,000____________Cost of Capital (COC) is+ 3.5___%. Cut Off period is 3__ years.

Compute PB, DPB, NPV, PI, and IRR.

Use your chosen invested capital and the Cost of Capital by your name in the Discount rate file posted on canvas.

Use the formulas provided on top of each column TO SHOW COMPUTATIONS.

YearCFCUM CFCF/(1+COC)N = PVCFCum PVCF

image text in transcribed

Capital Budgeting Table: Interest Factor1.0350 YearsCash FlowsProfit (CF)Cumulated CFPVCF @__3.5_%Profit (PVCF)Accumulated PVCF(4,000)04,000 (4,000) (4,000)0 5,000 15,000 (9,000)5,000 4,831 831 4,831 6,000 26,000 (3,000)11,000 5,601 6,432 10,432 7,000 37,000 4,000 18,000 6,314 12,746 16,746 8,000 48,000 12,000 26,000 6,972 19,717 23,717 9,000 59,000 21,000 35,000 7,578 27,295 31,295 10,000 610,000 31,000 45,000 8,135 35,430 39,430 11,000 711,000 42,000 56,000 8,646 44,076 48,076 12,000 812,000 54,000 68,000 9,113 53,189 57,189 57,189 PB1.0000 DPB0.9812 NPV53,188.7230 PI14.2972 IRR143.2822 142.2822% Transcribed image text

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

Students also viewed these Accounting questions