Can you tell me how to get the 0% to 25% rate numbers? I have to plot the NPV profiles. Year Project A Discounted cashflow Discounted cashflow 0 -50,000 -$50,000.00 -$50,000.00 1 25,000 $22,727.27 $23,584.91 2 20,000 $16,528.93 $17,799.93 3 10,000 $7,513.15 $8,396.19 4 5,000 $3,415.07 $3,960.47 5 5,000 $3,104.61 $3,736.29 NPV $3,289.02 $7,477.79 IRR 14% 14% 10% 6% Year Project B Discounted cashflow Discounted cashflow 0 -50,000 -$50,000.00 -$50,000.00 1 15,000 $13,636.36 $14,150.94 2 15,000 $12,396.69 $13,349.95 3 15,000 $11,269.72 $12,594.29 4 15,000 $10,245.20 $11,881.40 5 15,000 $9,313.82 $11,208.87 NPV $6,861.80 $13,185.46 IRR 15% 15% Rate Project A Project B 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25%
Can you tell me how to get the 0% to 25% rate numbers? I have to plot the NPV profiles. Year Project A Discounted cashflow Discounted cashflow 0 -50,000 -$50,000.00 -$50,000.00 1 25,000 $22,727.27 $23,584.91 2 20,000 $16,528.93 $17,799.93 3 10,000 $7,513.15 $8,396.19 4 5,000 $3,415.07 $3,960.47 5 5,000 $3,104.61 $3,736.29 NPV $3,289.02 $7,477.79 IRR 14% 14% 10% 6% Year Project B Discounted cashflow Discounted cashflow 0 -50,000 -$50,000.00 -$50,000.00 1 15,000 $13,636.36 $14,150.94 2 15,000 $12,396.69 $13,349.95 3 15,000 $11,269.72 $12,594.29 4 15,000 $10,245.20 $11,881.40 5 15,000 $9,313.82 $11,208.87 NPV $6,861.80 $13,185.46 IRR 15% 15% Rate Project A Project B 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25%
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...
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Can you tell me how to get the 0% to 25% rate numbers? I have to plot the
| Year | Project A | Discounted cashflow | Discounted cashflow |
| 0 | -50,000 | -$50,000.00 | -$50,000.00 |
| 1 | 25,000 | $22,727.27 | $23,584.91 |
| 2 | 20,000 | $16,528.93 | $17,799.93 |
| 3 | 10,000 | $7,513.15 | $8,396.19 |
| 4 | 5,000 | $3,415.07 | $3,960.47 |
| 5 | 5,000 | $3,104.61 | $3,736.29 |
| NPV | $3,289.02 | $7,477.79 | |
| 14% | 14% | ||
| 10% | 6% | ||
| Year | Project B | Discounted cashflow | Discounted cashflow |
| 0 | -50,000 | -$50,000.00 | -$50,000.00 |
| 1 | 15,000 | $13,636.36 | $14,150.94 |
| 2 | 15,000 | $12,396.69 | $13,349.95 |
| 3 | 15,000 | $11,269.72 | $12,594.29 |
| 4 | 15,000 | $10,245.20 | $11,881.40 |
| 5 | 15,000 | $9,313.82 | $11,208.87 |
| NPV | $6,861.80 | $13,185.46 | |
| IRR | 15% | 15% |
| Rate | Project A | Project B |
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