1. Evaluation of Four Independent Projects (20') The cash flow profiles of four independent projects are shown in the following table. Using a MARR of 18%, determine the acceptability of each of the projects on the basis of the net present value criterion for accepting independent projects. Cash Flow Profiles of Four Independent Projects (in $ million) t A В C D to -60. 0 -75. 0 -50 30.0 1 20. 0 25.0 20.0 20. 0 25.0 -60. 0 3 20. 0 25. 0 -80. 0 4 20. 0 25. 0 40. 0 200. O 20. 0 -50. 0 60.0

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
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1. Evaluation of Four Independent Projects (20')
The cash flow profiles of four independent projects are shown in the
following table. Using a MARR of 18%, determine the acceptability
of each of the projects on the basis of the net present value criterion
for accepting independent projects.
Cash Flow Profiles of Four Independent Projects (in $ million)
t
A
B
C
D
to
-60. 0
-75. 0
-50
30.0
1
20. 0
25. 0
20. 0
2
20. 0
25. 0
-60. 0
20. 0
25. 0
-80. 0
4
20. 0
25. 0
40. 0
200. 0
20. 0
-50. 0
60.0
Transcribed Image Text:1. Evaluation of Four Independent Projects (20') The cash flow profiles of four independent projects are shown in the following table. Using a MARR of 18%, determine the acceptability of each of the projects on the basis of the net present value criterion for accepting independent projects. Cash Flow Profiles of Four Independent Projects (in $ million) t A B C D to -60. 0 -75. 0 -50 30.0 1 20. 0 25. 0 20. 0 2 20. 0 25. 0 -60. 0 20. 0 25. 0 -80. 0 4 20. 0 25. 0 40. 0 200. 0 20. 0 -50. 0 60.0
第5页(共
(i=18%)
(F/A, i, n)
1. 0000
2. 1800
KA/F, i, n)(A/P, i, n)XP/A. i, n)
1. 1800
0. 6387
0. 4599
0. 3717
0. 3198
0. 2859
0. 2624
0. 2452
0. 2324
0. 2225
0.2148
0. 2086
0. 2037
0. 1997
0. 1964
0. 1937
0. 1915
0. 1896
0. 1881
0. 1868
0. 1857
0. 1848
0. 1841
0. 1835
0. 1829
0. 1825
0. 1821
0. 1818
0. 1815
0. 1813
0. 1811
0. 1809
0. 1808
0. 1806
(F/P, i, n)
1. 1800
1. 3924
1. 6430
1. 9388
2. 2878
2. 6996
КР/F, i, n)
0. 8475
0. 7182
0. 6086
0. 5158
0. 4371
0. 3704
0. 3139
0. 2660
Year
1. 0000
0. 4587
0. 2799
0. 1917
0. 1398
0. 1059
0, 0824
0. 8475
1. 5656
2. 1743
2. 6901
1
2
3
3. 5724
5. 2154
5
7. 1542
3. 1272
9. 4420
3. 4976
3. 8115
4. 0776
6.
3. 1855
3. 7589
7
12. 1415
0. 0652
0. 0524
0. 0425
0. 0348
0. 0286
0. 0237
0. 0197
0. 0164
0. 0137
0. 0115
0. 0096
0.0081
0. 0068
0. 0057
0. 0048
0. 0041
0. 0035
0. 0029
0. 0025
0. 0021
0.0018
8.
15. 3270
0. 2255
0. 1911
0. 1619
0. 1372
0. 1163
0. 0985
0. 0835
0. 0708
0. 0600
0. 0508
0. 0431
0. 0365
0. 0309
0. 0262
0. 0222
0. 0188
0. 0160
0. 0135
0. 0115
0. 0097
9
4. 4355
19. 0859
4. 3030
10
5. 2338
23. 5213
4. 4941
11
6. 1759
28. 7551
4. 6560
34. 9311
4. 7932
4. 9095
5. 0081
12
7. 2876
13
8. 5994
42. 2187
14
10. 1472
50. 8180
15
11. 9737
60. 9653
5. 0916
16
14. 1290
72. 9390
5. 1624
87. 0680
103. 7403
17
16. 6722
5. 2223
18
19. 6733
5. 2732
19
23. 2144
123. 4135
5. 3162
20
27. 3930
146. 6280
5. 3527
32. 3238
38. 1421
21
174. 0210
5. 3837
22
206. 3448
5. 4099
23
45. 0076
244. 4868
5. 4321
24
53. 1090
289. 4945
5. 4509
342. 6035
405. 2721
25
62. 6686
5. 4669
26
73. 9490
5. 4804
479. 2211
566. 4809
27
87. 2598
5. 4919
28
102. 9666
5. 5016
0.0015
0. 0013
0. 0011
0, 0009
0. 0008
0. 0006
0. 0006
0. 0005
0. 0004
0.0003
0. 0003
0. 0002
0. 0002
0. 0002
0. 0001
0.0001
0. 0001
29
121. 5005
0.0082
669. 4475
5. 5098
0. 0070
5. 5168
5. 5227
5. 5277
30
143. 3706
790. 9480
169. 1774
199. 6293
31
0.0059
934. 3186
0.0050
0. 0042
1, 103. 4960
1, 303. 1253
1, 538. 6878
32
33
235. 5625
5. 5320
34
277. 9638
0. 0036
5. 5356
327. 9973
387. 0368
456. 7034
1, 816. 6516
2, 144. 6489
2, 531. 6857
0. 1806
0. 1805
0. 1804
0. 1803
0. 1803
0. 1802
0. 1802
0. 1802
0. 1801
0. 1801
0. 1801
0. 1801
0. 1801
0. 1801
0. 1801
0. 1800
35
0.0030
5. 5386
0. 0026
0. 0022
0. 0019
0. 0016
5. 5412
5. 5434
36
37
38
538. 9100
2, 988. 3891
5. 5452
5. 5468
5. 5482
39
635. 9139
0. 0013
0. 0011
0. 0010
0. 0008
0. 0007
0. 0006
0. 0005
0. 0004
3, 527. 2992
4, 163. 2130
4, 913. 5914
5, 799. 0378
6, 843. 8646
8, 076. 7603
9, 531. 5771
40
750. 3783
885. 4464
1, 044. 8268
1, 232. 8956
1, 454. 8168
1, 716. 6839
41
5. 5493
5. 5502
5. 5510
42
43
44
5. 5517
45
5. 5523
46
2, 025. 6870
2, 390. 3106
2, 820. 5665
3, 328. 2685
3, 927. 3569
11, 248. 2610
13, 273. 9480
15, 664. 2586
18, 484. 8251
21, 813. 0937
0.0001
5. 5528
0. 0001
0. 0001
0. 0001
0.0000
47
5. 5532
48
0.0004
5. 5536
0. 0003
5. 5539
5. 5541
49
50
0. 0003
第6页(共6页)
Transcribed Image Text:第5页(共 (i=18%) (F/A, i, n) 1. 0000 2. 1800 KA/F, i, n)(A/P, i, n)XP/A. i, n) 1. 1800 0. 6387 0. 4599 0. 3717 0. 3198 0. 2859 0. 2624 0. 2452 0. 2324 0. 2225 0.2148 0. 2086 0. 2037 0. 1997 0. 1964 0. 1937 0. 1915 0. 1896 0. 1881 0. 1868 0. 1857 0. 1848 0. 1841 0. 1835 0. 1829 0. 1825 0. 1821 0. 1818 0. 1815 0. 1813 0. 1811 0. 1809 0. 1808 0. 1806 (F/P, i, n) 1. 1800 1. 3924 1. 6430 1. 9388 2. 2878 2. 6996 КР/F, i, n) 0. 8475 0. 7182 0. 6086 0. 5158 0. 4371 0. 3704 0. 3139 0. 2660 Year 1. 0000 0. 4587 0. 2799 0. 1917 0. 1398 0. 1059 0, 0824 0. 8475 1. 5656 2. 1743 2. 6901 1 2 3 3. 5724 5. 2154 5 7. 1542 3. 1272 9. 4420 3. 4976 3. 8115 4. 0776 6. 3. 1855 3. 7589 7 12. 1415 0. 0652 0. 0524 0. 0425 0. 0348 0. 0286 0. 0237 0. 0197 0. 0164 0. 0137 0. 0115 0. 0096 0.0081 0. 0068 0. 0057 0. 0048 0. 0041 0. 0035 0. 0029 0. 0025 0. 0021 0.0018 8. 15. 3270 0. 2255 0. 1911 0. 1619 0. 1372 0. 1163 0. 0985 0. 0835 0. 0708 0. 0600 0. 0508 0. 0431 0. 0365 0. 0309 0. 0262 0. 0222 0. 0188 0. 0160 0. 0135 0. 0115 0. 0097 9 4. 4355 19. 0859 4. 3030 10 5. 2338 23. 5213 4. 4941 11 6. 1759 28. 7551 4. 6560 34. 9311 4. 7932 4. 9095 5. 0081 12 7. 2876 13 8. 5994 42. 2187 14 10. 1472 50. 8180 15 11. 9737 60. 9653 5. 0916 16 14. 1290 72. 9390 5. 1624 87. 0680 103. 7403 17 16. 6722 5. 2223 18 19. 6733 5. 2732 19 23. 2144 123. 4135 5. 3162 20 27. 3930 146. 6280 5. 3527 32. 3238 38. 1421 21 174. 0210 5. 3837 22 206. 3448 5. 4099 23 45. 0076 244. 4868 5. 4321 24 53. 1090 289. 4945 5. 4509 342. 6035 405. 2721 25 62. 6686 5. 4669 26 73. 9490 5. 4804 479. 2211 566. 4809 27 87. 2598 5. 4919 28 102. 9666 5. 5016 0.0015 0. 0013 0. 0011 0, 0009 0. 0008 0. 0006 0. 0006 0. 0005 0. 0004 0.0003 0. 0003 0. 0002 0. 0002 0. 0002 0. 0001 0.0001 0. 0001 29 121. 5005 0.0082 669. 4475 5. 5098 0. 0070 5. 5168 5. 5227 5. 5277 30 143. 3706 790. 9480 169. 1774 199. 6293 31 0.0059 934. 3186 0.0050 0. 0042 1, 103. 4960 1, 303. 1253 1, 538. 6878 32 33 235. 5625 5. 5320 34 277. 9638 0. 0036 5. 5356 327. 9973 387. 0368 456. 7034 1, 816. 6516 2, 144. 6489 2, 531. 6857 0. 1806 0. 1805 0. 1804 0. 1803 0. 1803 0. 1802 0. 1802 0. 1802 0. 1801 0. 1801 0. 1801 0. 1801 0. 1801 0. 1801 0. 1801 0. 1800 35 0.0030 5. 5386 0. 0026 0. 0022 0. 0019 0. 0016 5. 5412 5. 5434 36 37 38 538. 9100 2, 988. 3891 5. 5452 5. 5468 5. 5482 39 635. 9139 0. 0013 0. 0011 0. 0010 0. 0008 0. 0007 0. 0006 0. 0005 0. 0004 3, 527. 2992 4, 163. 2130 4, 913. 5914 5, 799. 0378 6, 843. 8646 8, 076. 7603 9, 531. 5771 40 750. 3783 885. 4464 1, 044. 8268 1, 232. 8956 1, 454. 8168 1, 716. 6839 41 5. 5493 5. 5502 5. 5510 42 43 44 5. 5517 45 5. 5523 46 2, 025. 6870 2, 390. 3106 2, 820. 5665 3, 328. 2685 3, 927. 3569 11, 248. 2610 13, 273. 9480 15, 664. 2586 18, 484. 8251 21, 813. 0937 0.0001 5. 5528 0. 0001 0. 0001 0. 0001 0.0000 47 5. 5532 48 0.0004 5. 5536 0. 0003 5. 5539 5. 5541 49 50 0. 0003 第6页(共6页)
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