Homework Answers
Solution:
| Chart values are based on: | ||||
| i= | 10% | |||
| Year | Cash inflows (Outflow) | Table Factor | Present value of cash flows | Cumulative Present value of Cash inflow (Outflow) |
| 0 | -$9,767,695.00 | 1.00000 | -$9,767,695 | -$9,767,695 |
| 1 | $2,037,530.00 | 0.90909 | $1,852,300 | -$7,915,395 |
| 2 | $4,519,516.00 | 0.82645 | $3,735,137 | -$4,180,258 |
| 3 | $3,664,429.00 | 0.75131 | $2,753,140 | -$1,427,118 |
| 4 | $986,000.00 | 0.68301 | $673,451 | -$753,667 |
| 5 | $986,000.00 | 0.62092 | $612,228 | -$141,438 |
| 6 | $986,000.00 | 0.56447 | $556,571 | $415,133 |
| 7 | $986,000.00 | 0.51316 | $505,974 | $921,107 |
| Calculate the portion of the year: | 5 | |||
| Numerator for partial year | $141,438.00 | |||
| Denominator for partial year | $556,571.00 | |||
| Discounted payback period | 5.25 | Years |
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Problem 10.20 Nugent Communication Corp. is investing $9,767,695 in new technologies. The company expects significant benefits...
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Healthy Potions, Inc., is considering investing in a new
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Problem 10.18 Healthy Potions, Inc., is considering investing in a new production line for eye drops....
Problem 10.18
Healthy Potions, Inc., is considering investing in a new production
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company needs to increase its cash and cash equivalents by $10,000,
increase the level of inventory by $46,000, increase accounts
receivable by $25,000, and increase accounts payable by $5,000 at
the beginning of the project. Healthy Potions will recover these
changes in working capital at the end of the project 9 years later.
Assume the appropriate discount...
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Healthy Potions, Inc., is considering investing in a new
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increase accounts receivable by $25,000, and increase accounts
payable by $5,000 at the beginning of the project. Healthy Potions
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