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.xlsx

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ECPI University, Virginia Beach *

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472L

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Finance

Date

Feb 20, 2024

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xlsx

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24

Uploaded by CaptainUniverseEagle16

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Directions: LAB1a calculate the NPV, IRR, Payback period, Discounted pa Years Undiscounted Cash Inflows Intere Year 0 ($ Outlay) ($1,000,000) Year 1: $250,000 (1+.03)^1 Year 2: $250,000 (1+.03)^2 Year 3: $375,000 (1+.03)^3 Year 4: $375,000 (1+.03)^4 Year 5: $250,000 (1+.03)^5 A. NPV: $370,380.39 IS NPV GO B. IRR: 15% IS IRR GOO C. Undiscounted Payback Period: 3.7 IS SHORTER OR L D. Discounted Payback Period 3.5 IS SHORTER OR L E. Profitability Index 0.63 IS THIS A Project A Data Investment Required: ($1,000,000) Discount Rate: 3% Cash Inflows over 5 years: Year 1 $250,000 Year 2 $250,000 Year 3 $375,000 Year 4 $375,000 Year 5 $250,000 $1,500,000 Formula for Pro investment + NP Investment Formula for ex positive year + Profitability Ind
ayback period and profitability Index for this project per the data given below. Answer the qu est Factor Discounted Cash Inflows Undiscounted Payback Period ($1,000,000) 1.03 $242,718.45 ($750,000) 1.06 $235,648.98 ($500,000) 1.09 $343,178.12 ($125,000) 1.13 $333,182.64 $250,000 1.16 $215,652.20 OOD OR BAD? GOOD Good NPV = positive NPV Value OD OR BAD? GOOD Good IRR = IRR > Discount Rate LONGER PB BETTER? SHORTER LONGER PB BETTER? SHORTER A GOOD PI? BAD If PI < 1.00 = BAD ofitability Index: PV xact discount period: prior year negative/positive year positive dex Formula: -outlay + NPV -outlay
uestions. Complete everything in yellow. Discounted Payback Period ($757,281.55) ($521,632.58) ($178,454.45) $154,728.19
Directions: LAB1a calculate the NPV, IRR, Payback period, Discounted pa Years Undiscounted Cash Inflows Intere Year 0 ($ Outlay) ($1,000,000) Year 1: $250,000 (1+.03)^1 Year 2: $250,000 (1+.03)^2 Year 3: $375,000 (1+.03)^3 Year 4: $375,000 (1+.03)^4 Year 5: $250,000 (1+.03)^5 A. NPV: $370,380.39 IS NPV GO B. IRR: 15% IS IRR GOO C. Undiscounted Payback Period: 3.7 IS SHORTER OR L D. Discounted Payback Period 3.5 IS SHORTER OR L E. Profitability Index 0.63 IS THIS A Project A Data Investment Required: ($1,000,000) Discount Rate: 3% Cash Inflows over 5 years: Year 1 $250,000 Year 2 $250,000 Year 3 $375,000 Year 4 $375,000 Year 5 $250,000 $1,500,000 Formula for Pro investment + NP Investment Formula for ex positive year + Profitability Ind
ayback period and profitability Index for this project per the data given below. Answer the qu est Factor Discounted Cash Inflows Undiscounted Payback Period ($1,000,000) 1.03 $242,718.45 ($750,000) 1.06 $235,648.98 ($500,000) 1.09 $343,178.12 ($125,000) 1.13 $333,182.64 $250,000 1.16 $215,652.20 OOD OR BAD? GOOD Good NPV = positive NPV Value OD OR BAD? GOOD Good IRR = IRR > Discount Rate LONGER PB BETTER? SHORTER LONGER PB BETTER? SHORTER A GOOD PI? BAD If PI < 1.00 = BAD ofitability Index: PV xact discount period: + prior year negative/positive year positive dex Formula: ( -outlay + NPV) -outlay
uestions. Complete everything in yellow. Discounted Payback Period ($757,281.55) ($521,632.58) ($178,454.45) $154,728.19
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