mework: Homework - Chapter 26 O of 2 pts 2 ?? k/static) lick the loon to view th
ID: 2412953 • Letter: M
Question
mework: Homework - Chapter 26 O of 2 pts 2 ?? k/static) lick the loon to view the 8% 10% 2 | 0980 | 0961 | 0943 | 0925 | 0907 | 0.000 0873 | 0857 | 0842 | 0826 | 0797 | 0709 | 0.256 | 0743 | 0718 | 0.004 3 0971 0942 010 040 0816 0794 0772 0751 0712 0675 0658 041 009 0579 4061 0924 88 08 0823 0792 07630736 0708 060592 05720582 0516 0.482 s loss! 10906 | 0863 | 0822 0784 | 0747 | 0713 | 0681 | 0660 | 0121 | 0567 | 0.519 | 0 0476 | 0437 |0.402 6942 8 0837 0.70 0746 0.70506 56 0.50507 0456 0432 0410 0370 03 rement 1. Compute this project's NP 0933 0871 0813 0760 0711 0866 0623 0583 0547 0513 0452 0.400 0376 034 0314 027 8 0923 0 853 079 0731 0677 027 082 540 502 0467 0404 0.351 0327 0305 0.26 0233 90.914 0837 66 0.703 0645 052 54 0500 0480 0424 10 0.906 0820 44 06760814 0.558 0508 063 0422 0386 0322 0270 0247 027 1910 119898 084 98r 0475 0.429 .368 .30 0237 023 025 15 62 0360 024 0263 0225 0.194 0319 0257 0208 187 0.168 0137 0112 020 0229 182 0163 0145 0116 0 093 029 0263 0205 160 0141 0125 0.099 0078 0.887 078 070125 557 04970444 3 13 08790.773 081 060 0.530 04690415 0.368 0326 4 0870 0758 0 0577 050 0442 388 15 0881 0743 0642 056 0481 017 0.362 0315 0275 0239 18 140 0123 0.108 0084 16 08s3 a7280623034 0458 04 0339 02252 0163 023 0.107 0.093 0071 0054 17 0.844 0714 065 05130436 0371 0317 0270 0.231 0.198 0146 0.108 030080 0060 0045 19 08280 685 0570 045 3 0277 02 20 0820 0873 0554 0456 037 21 08110.660 0538 0439 0.3 6 033 0720194064 0116 .083 0070 000 0.043 0.031 0080070 0.080 0043 003 0312 0258 0215 178 104 003 0081 0051 0.037 00 006300440.0310 024 0220190 04 0135 0 Initial investment 0603 | 0647 | 0522 | 0422 | 0342 | 0.278 | 0226 0.184 | ? 150 | 0123 | 0.063 | 0.066 | 0046 | 0.038 | 0026 | 0011 23095 063405070406 326 0262 0 24 0788 0622 0492 030 0310 0247 0197 211 0170 0.138 0.112 0074 04 0040 0033 0022 0015 0158 0126 102 0.066 0043 0035 0028 0019 0013 of the project 250780 0610 0478 0375 250233184 1460116 0092 0059 003 0030 0024 016 0010
Explanation / Answer
The projected cash inflow schedule has been missing in the question. I assume the question is from Horngren's Financial & Managerial Accounting Chapter 26 Q 23 as thus, I have solved accordingly.
The following is the cash inflow schedule:
Year 1 261,000
Year 2 254,000
Year3 227,000
Year 4 211,000
Year 5 201,000
Year 6 175,000
Answer
Time
Net Cash Inflow
PV Factor
(i = 16%)
Present Value
Present Value of each year’s inflow
1
(n=1)
261,000
0.862
224,982
2
(n=2)
254,000
0.743
188,722
3
(n=3)
227,000
0.641
145,507
4
(n=4)
211,000
0.552
116,472
5
(n=5)
201,000
0.476
95,676
6
(n=6)
175,000
0.410
71,750
Total PV of Cash inflows
843,109
0
Initial Investment
(920,000)
NPV of project
(76,891)
Time
Net Cash Inflow
PV Factor
(i = 16%)
Present Value
Present Value of each year’s inflow
1
(n=1)
261,000
0.862
224,982
2
(n=2)
254,000
0.743
188,722
3
(n=3)
227,000
0.641
145,507
4
(n=4)
211,000
0.552
116,472
5
(n=5)
201,000
0.476
95,676
6
(n=6)
175,000
0.410
71,750
Total PV of Cash inflows
843,109
0
Initial Investment
(920,000)
NPV of project
(76,891)
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