Assignment MAT 540 Week 4

xlsx

School

Strayer University, Washington *

*We aren’t endorsed by this school

Course

540

Subject

Mathematics

Date

Feb 20, 2024

Type

xlsx

Pages

25

Uploaded by AgentElementBear32

Report
MAT540 Week 4 Assignment Te Student Name: Don Powell NPV, PP, IRR Calculations NPV Calculation Cash Flow 8% Discount factor Net annual cash flow 1-20 $ 80,000.00 9.81815 Salvage Value 20 $ 1,500,000.00 0.21455 Less Initial Invesment 0 $ 900,000.00 1 NPV Year Discount Rate Cash Flow Discount Factor 1 8% $80,000 0.92593 2 8% $80,000 0.85734 3 8% $80,000 0.79383 4 8% $80,000 0.73503 5 8% $80,000 0.68058 6 8% $80,000 0.63017 7 8% $80,000 0.58349 8 8% $80,000 0.54027 9 8% $80,000 0.50025 10 8% $80,000 0.46319 11 8% $80,000 0.42888 12 8% $80,000 0.39711 13 8% $80,000 0.36770 14 8% $80,000 0.34046 15 8% $80,000 0.31524 16 8% $80,000 0.29189 17 8% $80,000 0.27027 18 8% $80,000 0.25025 19 8% $80,000 0.23171 Instructions Read the scenario in Blackboard and complete the followin Use the space below to calculate the following for the project: Net Present Value (NPV). Payback Period (PP). Internal Rate of Return (IRR).
20 8% $80,000 0.21455 9.81815
emplate Present value Payback Period Calculation 11.25 Years $ 785,452.00 $ 321,825.00 $ 900,000.00 $ 207,277.00 Initial Investment $900,000 Estimated Useful Life 20 years Salvage Value $1,500,000 Cash Inflows $920,000 Cash Outflows $840,000 Net Annual Cash Flow $80,000 ng in the space provided below.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
Internal Rate of Return Calculation 0.88745 Year Net Annual Cash Flows Disc Fctr 1% 1 $80,000 0.99010 2 $80,000 0.98030 3 $80,000 0.97059 4 $80,000 0.96098 5 $80,000 0.95147 6 $80,000 0.94205 7 $80,000 0.93272 8 $80,000 0.92348 9 $80,000 0.91434 10 $80,000 0.90529 11 $80,000 0.89632 12 $80,000 0.88745 13 $80,000 0.87866 14 $80,000 0.86996 15 $80,000 0.86135 16 $80,000 0.85282 17 $80,000 0.84438 18 $80,000 0.83602 19 $80,000 0.82774
20 $80,000 0.81954
PV 1%isc Fctr 8% PV 8%isc Fctr 9% PV 9%sc Fctr 10% $79,208 0.92593 $74,074.07 0.91743 $73,394.50 0.90909 $78,424 0.85734 $68,587.11 0.84168 $67,334.40 0.82645 $77,647 0.79383 $63,506.58 0.77218 $61,774.68 0.75131 $76,878 0.73503 $58,802.39 0.70843 $56,674.02 0.68301 $76,117 0.68058 $54,446.66 0.64993 $51,994.51 0.62092 $75,364 0.63017 $50,413.57 0.59627 $47,701.39 0.56447 $74,617 0.58349 $46,679.23 0.54703 $43,762.74 0.51316 $73,879 0.54027 $43,221.51 0.50187 $40,149.30 0.46651 $73,147 0.50025 $40,019.92 0.46043 $36,834.22 0.42410 $72,423 0.46319 $37,055.48 0.42241 $33,792.86 0.38554 $71,706 0.42888 $34,310.63 0.38753 $31,002.63 0.35049 $70,996 0.39711 $31,769.10 0.35553 $28,442.78 0.31863 $70,293 0.36770 $29,415.83 0.32618 $26,094.29 0.28966 $69,597 0.34046 $27,236.88 0.29925 $23,939.72 0.26333 $68,908 0.31524 $25,219.34 0.27454 $21,963.04 0.23939 $68,226 0.29189 $23,351.24 0.25187 $20,149.58 0.21763 $67,550 0.27027 $21,621.52 0.23107 $18,485.85 0.19784 $66,881 0.25025 $20,019.92 0.21199 $16,959.50 0.17986 $66,219 0.23171 $18,536.97 0.19449 $15,559.17 0.16351
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
$65,564 0.21455 $17,163.86 0.17843 $14,274.47 0.14864
PV 10%sc Fctr 11% PV 11%sc Fctr 12% PV 12 % $72,727.27 0.900901 $72,072.07 0.892857 $71,428.57 $66,115.70 0.811622 $64,929.79 0.797194 $63,775.51 $60,105.18 0.731191 $58,495.31 0.71178 $56,942.42 $54,641.08 0.658731 $52,698.48 0.635518 $50,841.45 $49,673.71 0.593451 $47,476.11 0.567427 $45,394.15 $45,157.91 0.534641 $42,771.27 0.506631 $40,530.49 $41,052.65 0.481658 $38,532.67 0.452349 $36,187.94 $37,320.59 0.433926 $34,714.12 0.403883 $32,310.66 $33,927.81 0.390925 $31,273.98 0.36061 $28,848.80 $30,843.46 0.352184 $28,174.76 0.321973 $25,757.86 $28,039.51 0.317283 $25,382.67 0.287476 $22,998.09 $25,490.47 0.285841 $22,867.27 0.256675 $20,534.01 $23,173.15 0.257514 $20,601.14 0.229174 $18,333.94 $21,066.50 0.231995 $18,559.59 0.20462 $16,369.59 $19,151.36 0.209004 $16,720.35 0.182696 $14,615.70 $17,410.33 0.188292 $15,063.38 0.163122 $13,049.73 $15,827.57 0.169633 $13,570.61 0.145644 $11,651.55 $14,388.70 0.152822 $12,225.77 0.13004 $10,403.17 $13,080.64 0.137678 $11,014.21 0.116107 $9,288.54
$11,891.49 0.124034 $9,922.71 0.103667 $8,293.34
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
Sensitivity Analysis A. Recalculate NPV NPV ($109,929) A. Recalculate Payback Period Initial Investment $900,000 Estimated Useful Life 20 years Salvage Value $1,500,000 Cash Inflows $805,000 Cash Outflows $750,000 Net Annual Cash Flow $55,000 Payback Period 16.36 Instructions Read the assignment scenario in Blackboard and complet Conduct Sensitivity Analysis using the following valu A. Recalculate the new net present value (NPV) and 125 players attend the camp. 10% discount rate. Annual Cash flow projection - $805,000. Annual Cash Outflow projection - $750,000. B. Creat a NPV Comparison Graph: Create a graph to of this worksheet. C. Interprete the Sensitivity Analysis: Consider the s analysis reveals by considering the variability among
B. NPV Comparison Graph C. Interpretation of It is clear that Scenar 1-1 NPV $207,277.00 1-2 NPV -$109,929.00 te the following in the space provided below. ues: d payback period using the following data: to compare the NPV from part Part 1-1 to the recalculation in part A scenario and your calculations to interpret what the sensitivity g the different discount rates and potential returns. -$150,000.00 -$100,000.00 -$50,000.00 $0.00 $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00 NPV Comparisons 1-1 NPV 1-2 NPV
NPV Calculation Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
f Sensitivity Analysis rio 1 which was $80,000 at an 8% discount is the best option when compared to Scenario 2. In Scen
Discount Rate Cash Flow Discount Factor 10% $55,000 0.90909 Net Annual Cash Flow 10% $55,000 0.82645 Salvage Value 10% $55,000 0.75131 Less Initial Investment 10% $55,000 0.68301 10% $55,000 0.62092 Net Present Value 10% $55,000 0.56447 10% $55,000 0.51316 10% $55,000 0.46651 10% $55,000 0.42410 10% $55,000 0.38554 10% $55,000 0.35049 Sensitivity Analysis 10% $55,000 0.31863 10% $55,000 0.28966 10% $55,000 0.26333 Disc Fact 10% $55,000 0.23939 PV of net cash flows 10% $55,000 0.21763 $80,000* 9.81815 10% $55,000 0.19784 $55,000*8.51356 10% $55,000 0.17986 Less Capital Investment 10% $55,000 0.16351 NPV 10% $55,000 0.14864 8.51356
nario 1 we can recognize both a positive NPV and a shorter payback period. Scenario 1
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
Cash Flow 1-20 $55,000 8.51356 $468,246 20 $1,500,000 0.21455 $321,825 0 $900,000 1 $900,000 ($109,929) 8% 10% 9.81815 8.51356 $ 785,452.00 $ 468,246.00 $900,000 $900,000 $207,277 ($109,929)
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
What-If Analysis Calculate NPV NPV $824,726.00 Instructions Read the scenario in Blackboard and Ima flows each year were only $40,000. T $1,332,000. Complete the following: Recalculate the Internal Rate of Retu Create a bar graph that effectively co
Graphic Comparing IRRs IRR 1 IRR 2 agine that the camp has been running for five years. During those years, the annual net cash The company is running low on cash, and management has decided to sell the property for urn (IRR) of the project. ompares the recalculated IRR to the initial IRR using the other spreadsheets . IRR 1 IRR 2 0.82 0.84 0.86 0.88 0.9 0.92 0.94 0.96 0.98 1 1.02 IRR Comparisons
0.88745 Discount Rate Cash Flow Discount Factor 1 1 8% $40,000 0.925925925925926 2 8% $40,000 0.857338820301783 3 8% $40,000 0.79383224102017 4 8% $40,000 0.735029852796453 5 8% $40,000 0.680583197033753 6 8% $40,000 0.630169626883105 7 8% $40,000 0.583490395262134 8 8% $40,000 0.540268884501976 9 8% $40,000 0.500248967131459 10 8% $40,000 0.463193488084684 11 8% $40,000 0.428882859337671 12 8% $40,000 0.397113758645991 13 8% $40,000 0.367697924672214 14 8% $40,000 0.340461041363161 15 8% $40,000 0.31524170496589 16 8% $40,000 0.291890467561009 17 8% $40,000 0.270268951445379 18 8% $40,000 0.250249029116091 19 8% $40,000 0.231712063996381 20 8% $40,000 0.214548207404056 9.81814740744929 Cash Flow 0% Discount Factor 0% Present Value 1 $40,000 1 $40,000.00 2 $40,000 1 $40,000.00 3 $40,000 1 $40,000.00 4 $40,000 1 $40,000.00 5 $40,000 1 $40,000.00
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
6 $40,000 1 $40,000.00 7 $40,000 1 $40,000.00 8 $40,000 1 $40,000.00 9 $40,000 1 $40,000.00 10 $40,000 1 $40,000.00 11 $40,000 1 $40,000.00 12 $40,000 1 $40,000.00 13 $40,000 1 $40,000.00 14 $40,000 1 $40,000.00 15 $40,000 1 $40,000.00 16 $40,000 1 $40,000.00 17 $40,000 1 $40,000.00 18 $40,000 1 $40,000.00 19 $40,000 1 $40,000.00 20 $40,000 1 $40,000.00 $40,001 1 $40,001.00 $40,002 1 $40,002.00 $40,003 1 $40,003.00 $40,004 1 $40,004.00 $40,005 1 $40,005.00 $40,006 1 $40,006.00
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
Time Period Cash Flow 8% Discount Factor Present Value Net Annual Cash Flow 1-20 $40,000 9.81815 $392,726 Salvage Value 20 $1,500,000 0.21455 $1,332,000 Less Initial Investment 0 $900,000 1 $900,000 $824,726 PPC 22.5
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
Explain how this return rate was possible in a company that was considered to be failing In this situation, the company's decision to sell the property after the fifth year appears t significant error or misunderstanding. If they had not sold the property, it would have ta property's useful life to recover the funds. Given this new perspective, selling the propert to be the most sensible choice.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
to be influenced by a aken them longer than the ty after the fifth year seems
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help

Related Documents

M102_M3_Milestone1.docx
Assignment2-1.pdf
Practice Midterm Test Spring 2021 With Answers.pdf
Math Plan.pdf
Quiz8.pdf
Number 5.html
Determination of Concentration Post-Lab.pdf
M3.0 Laboratory Report 2 Worksheet22 (1).docx
MAT291H1_20229_611682395847Quiz 6.pdf
Math 131.docx
PHYS 200 Lab Report 1 (Revised).docx
Copy of 5Math 243 Hwk sheet on Ch.5 confidence Intervals.docx