1. Project Development time (hrs.) Initial investment Calendar/email Expense report Tracking program Spreadsheet program 1,250 hrs*$52 = $65,000 400 hrs*$52 = $20,800 750 hrs*$52 = $39,000 2,500 hrs*$52 = $130,000 1,875 hrs*$52 = $97,500 6,250 hrs*$52 = $325,000 1,250 400 750 2,500 1,875 6,250 Total time: 13,025 hrs. Web browser Trip planner Discount factor Year Project Calendar/ email Expense герort 0.05 Tracking program 0.05 Spreadshee t program 0.10 Web browser T planner 0.05 -0.10 0.15 -$65,000 $750,000 $675,000 $607,500 -$20,800 $250,000 $262,500 $275,625 -$39,000 $500,000 $525,000 $551,250 -$130,000 $1,000,000 $1,100,000 $1,210,000 -$97,500 $2,500,000 $2,875,000 $3,306,250 -$325,000 $1,300,000 $1,365,000 $1,433,250 1 1 0.8929 3 0.7972 0.7118 NPV $1,575,155 $607,862 $1,218,324 $2,501,025 $6,779,899 | $2,944,043
1. Project Development time (hrs.) Initial investment Calendar/email Expense report Tracking program Spreadsheet program 1,250 hrs*$52 = $65,000 400 hrs*$52 = $20,800 750 hrs*$52 = $39,000 2,500 hrs*$52 = $130,000 1,875 hrs*$52 = $97,500 6,250 hrs*$52 = $325,000 1,250 400 750 2,500 1,875 6,250 Total time: 13,025 hrs. Web browser Trip planner Discount factor Year Project Calendar/ email Expense герort 0.05 Tracking program 0.05 Spreadshee t program 0.10 Web browser T planner 0.05 -0.10 0.15 -$65,000 $750,000 $675,000 $607,500 -$20,800 $250,000 $262,500 $275,625 -$39,000 $500,000 $525,000 $551,250 -$130,000 $1,000,000 $1,100,000 $1,210,000 -$97,500 $2,500,000 $2,875,000 $3,306,250 -$325,000 $1,300,000 $1,365,000 $1,433,250 1 1 0.8929 3 0.7972 0.7118 NPV $1,575,155 $607,862 $1,218,324 $2,501,025 $6,779,899 | $2,944,043
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Can you explain how they calculate the value of NPV?
Transcribed Image Text:1.
Project
Development time (hrs.)
Initial investment
1,250 hrs*$52 = $65,000
400 hrs*$52 = $20,800
Calendar/email
Expense report
Tracking program
Spreadsheet program
1,250
400
750 hrs*$52 = $39,000
2,500 hrs*$52 = $130,000
1,875 hrs*$52 = $97,500
6,250 hrs*$52 = $325,000
750
2,500
1,875
6,250
Total time: 13,025 hrs.
Web browser
Trip planner
Year
Discount
factor
Project
Tracking
Spreadshee
t program
0.10
Web
Calendar/
email
Expense
report
0.05
planner
0.05
browser
program
0.05
-0.10
0.15
-$65,000
$750,000
$675,000
$607,500
-$20,800
$250,000
$262,500
$275,625
-$39,000
$500,000
$525,000
$551,250
-$130,000
$1,000,000
$1,100,000
$1,210,000
-$97,500
$2,500,000
$2,875,000
$3,306,250 | $1,433,250
-$325,000
$1,300,000
$1,365,000
1
1
0.8929
0.7972
3
0.7118
NPV
$1,575,155
$607,862
$1,218,324 | $2,501,025 | $6,779,899 | $2,944,043
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