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Net present value c. The internal rate of return is between what two whole discount rates (e.g., between 10 % and 11%, between 11% and 125 and 13%, between 13% and 14%, etc.)? The internal rate of return is between and %

Net present value c. The internal rate of return is between what two whole discount rates (e.g., between 10 % and 11%, between 11% and 125 and 13%, between 13% and 14%, etc.)? The internal rate of return is between and %

Essentials Of Investments
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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ces a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round your present value factor to 3 decimals and round all other intermediate calculations to nearest whole dollar.) Net present value c. The internal rate of return is between what two whole discount rates (e.g., between 10% and 11%, between 11% and 12 %, between 12% and 13%, between 13% and 14%, etc.)? The internal rate of return is between and Minimum salvage value required to generate a positive present value % d. Reset the discount rate to 12%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value?
Transcribed Image Text:ces a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round your present value factor to 3 decimals and round all other intermediate calculations to nearest whole dollar.) Net present value c. The internal rate of return is between what two whole discount rates (e.g., between 10% and 11%, between 11% and 12 %, between 12% and 13%, between 13% and 14%, etc.)? The internal rate of return is between and Minimum salvage value required to generate a positive present value % d. Reset the discount rate to 12%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value?
es 2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following: Use Exhibit 78-1 and Exhibit 78-2. (Use appropriate factor(s) from the tables provided.) A 1 Chapter 7: Applying Excel 2 3 4 Data Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years 8 Salvage value of the equipment in five years. 9 Annual revenues and costs: 5 6 7 Sales revenues Cost of goods sold Out-of-pocket operating costs 10 11 12 13 Discount rate $ $ $ $ $ $ $ B 210,000 25,000 15,000 35,000 360,000 225,000 80,000 C 12 % a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round your present value factor to 3 decimals and round all other intermediate calculations to nearest whole dollar)
Transcribed Image Text:es 2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following: Use Exhibit 78-1 and Exhibit 78-2. (Use appropriate factor(s) from the tables provided.) A 1 Chapter 7: Applying Excel 2 3 4 Data Example E Cost of equipment needed Working capital needed Overhaul of equipment in four years 8 Salvage value of the equipment in five years. 9 Annual revenues and costs: 5 6 7 Sales revenues Cost of goods sold Out-of-pocket operating costs 10 11 12 13 Discount rate $ $ $ $ $ $ $ B 210,000 25,000 15,000 35,000 360,000 225,000 80,000 C 12 % a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round your present value factor to 3 decimals and round all other intermediate calculations to nearest whole dollar)
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