What is the discount rate for year 2? ____________ What is the NPV of all costs for year 1? ____________________ What is the NPV of benefits for year 2? _________________ What is the NPV of benefits for year 5? _________________ What is the NPV of all costs in year 5? ___________________ What is the TOTAL NPV of benefits? __________________ What is the TOTAL NPV of all costs? ____________________ What is the OVERALL NPV? _________________________ What is the ROI? ____________________________________ When does the project break-even? _____________________ What is the break-even fraction? _______________________
What is the discount rate for year 2? ____________ What is the NPV of all costs for year 1? ____________________ What is the NPV of benefits for year 2? _________________ What is the NPV of benefits for year 5? _________________ What is the NPV of all costs in year 5? ___________________ What is the TOTAL NPV of benefits? __________________ What is the TOTAL NPV of all costs? ____________________ What is the OVERALL NPV? _________________________ What is the ROI? ____________________________________ When does the project break-even? _____________________ What is the break-even fraction? _______________________
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
100%
What is the discount rate for year 2? ____________
What is the
What is the NPV of benefits for year 2? _________________
What is the NPV of benefits for year 5? _________________
What is the NPV of all costs in year 5? ___________________
What is the TOTAL NPV of benefits? __________________
What is the TOTAL NPV of all costs? ____________________
What is the OVERALL NPV? _________________________
What is the
When does the project break-even? _____________________
What is the break-even fraction? _______________________
Transcribed Image Text:Project B
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Net Economic
85000
85000
85000
85000
85000
Benefit
Discount Rate
1.000
.9091
.7513
.6830
.6209
(10%)
PV of Benefits
77274
70244
63861
58055
52777
NPV of all
77274
X
211378
269433
X
Benefits
One-Time Costs
(75000)
Recurring Costs
(40000)
(40000)
(40000)
(40000)
(40000)
Discount Rate
1.000
.9091
.7513
.6830
.6209
(10%)
PV of Recurring
(36364)
(33056)
(30052)
(27320)
(24836)
Costs
NPV of all Costs
(75000)
(144420)
(174472)
(201792)
Overall NPV
Overall ROI
Break-even
Analysis
Yearly NPV Cash
(75000)
40910
37188
33809
30735
27941
Flow
Overall NPV cash
(75000)
(34091)
3098
36906
67641
95582
Flow
Break-even
fractions
Break-even
Х уears
occurs at
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education