Discount rate Benefits Discount factor PV of benefits 2 3 NPV of all Benefits 4 5 Costs 6 Discount factor 57 PV of costs 58 59 NPV of all Costs 60 61 62 Overall NPV 63 64 Overall ROI 65 66 Break Even Analysis 67 Yearly NPV Cash Flow 68 Overall NPV Cash Flow 69 Project Break Even Analysis occurs 70 between years 71 72 Actual Break Even Analysis 73 $ $ $ $ $ $ 8.00% 0 1.00 $ $ $9,400 $9,400 $ 9,400 $ 1.00 9,400 $ 9,400 $ Year 1 19,000 $ 0.93 17,670 $ 17,670 $ 11,100 $ 0.93 10,323 $ 19,723 $ $7,347 $2,053 2 16,500 $ 0.86 14,190 $ 31,860 $ 11,150 $ 0.86 9,589 $ 29,312 $ $4,601 $2,548 12,500 0.79 3 9,875 41,735 $ 11,150 0.79 8,809 38,121 $ $1,066 $3,614 Total 41,735 38,121 $3,614 0.09
Discount rate Benefits Discount factor PV of benefits 2 3 NPV of all Benefits 4 5 Costs 6 Discount factor 57 PV of costs 58 59 NPV of all Costs 60 61 62 Overall NPV 63 64 Overall ROI 65 66 Break Even Analysis 67 Yearly NPV Cash Flow 68 Overall NPV Cash Flow 69 Project Break Even Analysis occurs 70 between years 71 72 Actual Break Even Analysis 73 $ $ $ $ $ $ 8.00% 0 1.00 $ $ $9,400 $9,400 $ 9,400 $ 1.00 9,400 $ 9,400 $ Year 1 19,000 $ 0.93 17,670 $ 17,670 $ 11,100 $ 0.93 10,323 $ 19,723 $ $7,347 $2,053 2 16,500 $ 0.86 14,190 $ 31,860 $ 11,150 $ 0.86 9,589 $ 29,312 $ $4,601 $2,548 12,500 0.79 3 9,875 41,735 $ 11,150 0.79 8,809 38,121 $ $1,066 $3,614 Total 41,735 38,121 $3,614 0.09
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
Related questions
Question
how to find the project break even analysis and the actual break
Transcribed Image Text:45 Discount rate
46
47
48
49 Benefits
50 Discount factor
51 PV of benefits
52
53 NPV of all Benefits
54
55 Costs
56 Discount factor
57 PV of costs
58
59 NPV of all Costs
60
61
62 Overall NPV
63
64 Overall ROI
65
66 Break Even Analysis
67 Yearly NPV Cash Flow
68 Overall NPV Cash Flow
69
70 1 72 73 74
70 between years
71
Project Break Even Analysis occurs
72 Actual Break Even Analysis
75
$
$
$
8.00%
0
1.00
$
9,400 $
1.00
9,400 $
9,400 $
$9,400
$9.400
Year
1
19,000 $
0.93
17,670 $
17,670 $
11,100 $
0.93
10,323 $
19,723 $
$7.347
$2,053
2
16,500 $
0.86
14,190 $
31,860 $
11,150 $
0.86
9,589 $
29,312 $
$4,601
$2,548
12,500
0.79
9,875
3
41,735 $
11,150
0.79
8,809
38,121 $
$1,066
$3,614
Total
41,735
38,121
$3,614
0.09
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