课件说明问题2chapter 22.pdfVIP

Problems

Problem2:

AverageRateofReturn=$30,000/$200,000=0.15=15%

Problem4:

i=24%

InvestmentYr1Yr2Yr3Yr4

Cashflow$(75,000)$20,000$25,00030,000$$50,000

PVIF1.00001.24001.53761.90662.3642

PV$$(75,000)$16,129$16,25915,735$$21,149

NPV$(5,729)

Theadditionof4%inflationmakestheinvestmentunfavorableatahurdlerateof20%.

Problem6:

YearPessimisticMostLikelyOptimisticUsedPVIFPV$

0$(65,000)$(65,000)$(65,000)$(65,000)1$(65,000)

1$14,000$20,000$22,000$20,0001.200$16,667

2$19,000$25,000$30,000$25,0001.44$17,361

3$27,000$30,000$36,000$30,0001.728$17,361

4$32,000$35,000$39,000$35,0002.0736$16,879

Rate20%NPV$3,268

Thecolumnlabeled“Used”indicatesthecashflowvalueusedtocalculatethenetpresent

value.

Theprofitabilityindexisthesumofthediscountedcashflowsdividedbytheinitial

investment.ForthisproblemitisthesumofthePV’sforyears1-4dividedby$65,000

or:

68,268/65,000=1.05

Sincethevalueitgreaterthanone,theprojectshouldbeaccepted.