Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PV of an Ordinary Annuity and PV of $1 Year 6% 8% 9% 10% Requirement 3: Calculate the Net Present Value for the equipment supplied

PV of an Ordinary Annuity and PV of $1 Year 6% 8% 9% 10%

image text in transcribed
Requirement 3: Calculate the Net Present Value for the equipment supplied by Co. 1 and Co.2 in the space provided-cost of capital 10%. Show cash outflows as negative numbers in parentheses. of maldone Co. 1 Equipment: asinsgmos owT memalupe sylwiastunsm wantsmore Present Value Factors. Annual PV Factor Present Year Cash Flow for1, 10% Value 0 PV of an Ordinary Annuity 1-10 of $ 1 10 6% NPV 6. 20979 5.746 604 5.53482 000 OSS 2 Co. 2 Equipment: 10 0% Annual PV Factor Present 000 Year 5.33493 Cash Flow 10% Value 9 ) 4.80169 6.24 689 0 5.9 9 525 1-10 5.75 902 10 NPV 10 7. 36009 6 10 71008 6.4176 6 4. 14457 Requirement 4: Re-calculate the Net Present Value for the equipment supplied by Co. 1 and Co.2 but this time use 6% as the cost of capital. Show cash outflows as negative numbers in parentheses. Pv of $ 1 / Co. 1 Equipment: Annual PV Factor Present yrs 6010 90 40 Year Cash Flow 6% Value 0 0. 4 2741 0.54 027 0. 50187 1-10 10010 10 0. 59190 0.50025 NPV 0.4 6 651 0. 94043 10 0.5583 9 0. 42410 0. 46319 0.92241 0.38554

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

Business Accounting

Authors: Jill Collis, Andrew Holt, Roger Hussey

3rd Edition

113752149X, 9781137521491

More Books

Students also viewed these Accounting questions

Question

What are the characteristics of a government?

Answered: 1 week ago

Question

Review the findings of humanistic psychotherapy outcome research.

Answered: 1 week ago