Time and Cash Mgt Plan Activity
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CUNY Borough of Manhattan Community College *
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MISC
Subject
Finance
Date
Feb 20, 2024
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docx
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Uploaded by iganony123
OPM 3740
Class Activity:
The Time and Cash Management Planning Problem of Go Logistics, Inc.
1.
In “plan 1” cash flow chart (slide 5), which point (A, B, C, D) is fundamentally driving the 10-year payback period calculation
? Why?
2.
See cell E15 (slides 4 & 6) where the total
discounted cash flows
of plan 1 and plan 2 are $1,086,675 and $1,018,884, respectively. What is the more common name of these numbers? 3.
Based on these total
discounted cash flows
(column E only), which plan would you recommend GOLI’s PMO adopt? Why?
4.
Based on payback period and IRR
(cells B19:B20), which plan is more attractive? Why?
5.
Based on project cash flows (slides 5 & 7), which plan is more attractive? Why?
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3.
follows:
Carnegie Corp. projects an annual cash flow for one of its divisions as
Year
0
1
2
3
4
5
6
Cash flow (SM)
3
0
-10
2
2
2
2
What is the IRR for this cash flow stream? Try plotting the NPV as a function of
the discount rate. Are there any problems with using IRR for this application?
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Fundamentals of Engineering Economy
Consider the cash flow transactions depicted in the accompanying cash flowdiagram, with the changing interest rates specified. What is the equivalent presentworth?
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Please help with answers asap
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Consider the following cash flows:
Year
Cash Flow
-$28,700
15,000
13,900
10,300
3
a. What is the profitability index for the cash flows if the relevant discount rate is 12
percent? (Do not round intermediate calculations and round your answer to 3
decimal places, e.g., 32.161.)
b. What is the profitability index if the discount rate is 17 percent? (Do not round
intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
c. What is the profitability index if the discount rate is 25 percent? (Do not round
intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
a. Profitability index
b. Profitability index
c. Profitability index
O123
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Consider the following cash flows:
Year
Cash Flow
-$28,600
15,100
13,800
10,200
1
2
a. What is the profitability index for the cash flows if the relevant discount rate is 11
percent? (Do not round intermediate calculations and round your answer to 3
decimal places, e.g., 32.161.)
b. What is the profitability index if the discount rate is 16 percent? (Do not round
intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
c. What is the profitability index if the discount rate is 23 percent? (Do not round
intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
Profitability index
а.
b. Profitability index
Profitability index
C.
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Consider the following cash flows:
Year
Cash Flow
0
-$ 29,200
123
14,500
14,400
10,800
a. What is the profitability index for the cash flows if the relevant discount rate is 12 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
b. What is the profitability index if the discount rate is 17 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
c. What is the profitability index if the discount rate is 24 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
a. Profitability index
b. Profitability index
c. Profitability index
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Baghiben
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H1.
Account
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Consider the following cash flows:
Year Cash Flow
0
1
2
3
$33,000
13,900
17,800
11,300
Required:
What is the IRR of the above set of cash flows? (Do not round intermediate calculations.
Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
Internal rate of return
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Consider the following cash flow:
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
$75
-$100 -$100
$75
$75
$75
$75
$75
$75
-$100
a. Is IRR unique?
b. Estimate IRR (to the nearest %) of this cash flow.
C.
Find ERR assuming a finance rate of 10% and an investment rate of 20%.
undefined
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please help...
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Consider the following cash flows:
Cash Flow
Year
Ө
-$ 32,500
1
13,300
2
18,400
3
10,700
What is the IRR of the cash flows?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Internal rate of return
%
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Give true solution
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Consider the following cash flows:
Year
Cash Flow
0
−$28,300
1
15,400
2
13,500
3
9,900
a.
What is the profitability index for the cash flows if the relevant discount rate is 9 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
b.
What is the profitability index if the discount rate is 14 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
c.
What is the profitability index if the discount rate is 25 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
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D. (1) Consider the following cash inflows of a financial product. Given that the market
interest rate is 12%, what price would you pay for these cash flows?
Year
0
1
2
3
4
Cash Flow
160
170
180
230
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Explain Well all question with proper answer.
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Consider the following cash flows:
Year
Cash Flow
33,000
13,400
18,300
10,800
1
2
3
a. What is the NPV at a discount rate of zero percent? (Do not round intermediate
calculations and round your answer to the nearest whole number, e.g., 32.)
b. What is the NPV at a discount rate of 12 percent? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. What is the NPV at a discount rate of 23 percent? (A negative answer should be
indicated by a minus sign. Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
d. What is the NPV at a discount rate of 32 percent? (A negative answer should be
indicated by a minus sign. Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
а.
Net present value
b.
Net present value
C.
Net present value
d.
Net present value
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4 (a) Evaluate the cash flow diagram given by the figure
below. Determine a Net Present Value and a Net
Equivalent Annual Payment. Use an interest rate of i =
1%. (Hints: Arrows are end-of-the-year cash flows.
These arrows pointing down represent costs and
upward arrows are revenues.
(b) Repeat (a) with an interest rate of i = 10%.
$400
$400
$300
$300
$200
$200
1
2
3
5
6.
7
8
$200
$200
$200
$500
$600
10
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es
Consider the following cash flows:
Year
Cash Flow
0
-$ 29,900
1
13,800
2
3
15,100
11,500
a. What is the profitability index for the cash flows if the relevant discount rate is 8 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
b. What is the profitability index if the discount rate is 13 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
c. What is the profitability index if the discount rate is 20 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
a. Profitability index
b. Profitability index
c. Profitability index
T
arrow_forward
Consider the following cash flows:
Year
Cash Flow
0
-$ 28,900
1
14,800
2
3
14,100
10,500
a. What is the profitability index for the cash flows if the relevant discount rate is 8 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161
b. What is the profitability index if the discount rate is 13 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161
c. What is the profitability index if the discount rate is 20 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161
Answer is not complete.
0.181 ×
a. Profitability index
b. Profitability index
c. Profitability index
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Problems 1-2 are based on the information given in the following table:
Year
A
0
-2,500
1
746
2
746
3
746
4
746
5
746
IRR
15%
The internal rate of return on the incremental cash flows is closest to
O A. 4%
O B. 6%
O C. 8%
O D. 10%
O E. 12%
B
-6,000
1,664
1,664
1,664
1,664
1,664
12%
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Consider the following cash flows:
Year
Cash Flow
0
−$ 29,000
1
14,700
2
14,200
3
10,600
What is the profitability index for the cash flows if the relevant discount rate is 10 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
What is the profitability index if the discount rate is 15 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
What is the profitability index if the discount rate is 22 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
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Consider the following cash flows:
Year
Cash Flow
0
–$
32,000
1
14,200
2
17,500
3
11,600
a.
What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
b.
What is the NPV at a discount rate of 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c.
What is the NPV at a discount rate of 20 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
d.
What is the NPV at a discount rate of 30 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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3. Find the internal rate of return
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2. Compute the internal rate of return for each of the cash flows in problem 1.
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Task 2A business has two projects to invest in, as follows:Create a new spread sheet, calculate NPV for the following projects at discount rates of 3% and 7%, respectively, by creating a dynamic process.
Project 1 Project 2Year Cash inflows Cash outflows Cash inflows Cash outflows0 0.00 70,000.00 0.00 70,000.001 24,000.00 13,000.00 25,000.00 15,000.002 22,000.00 1,000.00 25,000.00 03 25,000.00 0 20,000.00 04 25,000.00 0 43,000.00 21,000.005 17,500.00 7,500.00 20,000.00 5,000.00
P1: NPV P2: NPVThen, a) by using a built-in/Excel function, calculate the NPV for each project with discount rates of 3% and 7%, respectively;b) By comparing the NPVs at the rate of…
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Consider the following cash flows:
Year
Cash Flow
0
-$ 14,800
1
8,400
2
7,600
4,300
a. What is the profitability index for the above set of cash flows if the relevant discount rate is 10 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
b. What is the profitability index if the discount rate is 15 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
c. What is the profitability index if the discount rate is 22 percent?
Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
a. Profitability index
b. Profitability index
c. Profitability index
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