I need help in this question. Please answer 100% correctly
I am not understanding why my answer is wrong. Please help me, ,check rounding digits please
VANS | |||||||
Year | Cost | Working capital | Operating cashflow | Total cashflow | PV factor, 1/(1+12%)^time | Cashflow * PV factor | |
0 | $(680,000.00) | $(43,000.00) | $(723,000.00) | 1.0000 | $(723,000.00) | ||
1 | $ 320,000.00 | $ 320,000.00 | 0.8929 | $ 285,714.29 | |||
2 | $ 320,000.00 | $ 320,000.00 | 0.7972 | $ 255,102.04 | |||
3 | $ 320,000.00 | $ 320,000.00 | 0.7118 | $ 227,769.68 | |||
4 | $ 97,000.00 | $ 43,000.00 | $ 320,000.00 | $ 460,000.00 | 0.6355 | $ 292,338.32 | |
NPV | $ 337,924.32 | ||||||
Profitability index | Sum of PV of inflows/Outflow | =1060938/723000 | |||||
Profitability index | Sum of PV of inflows/Outflow | 1.47 | |||||
Trucks | |||||||
Year | Cost | Training cost | Operating cashflow | Total cashflow | PV factor, 1/(1+12%)^time | Cashflow * PV factor | |
0 | $(760,000.00) | $(14,000.00) | $(774,000.00) | 1.0000 | $(774,000.00) | ||
1 | $ 159,000.00 | $ 159,000.00 | 0.8929 | $ 141,964.29 | |||
2 | $ 313,000.00 | $ 313,000.00 | 0.7972 | $ 249,521.68 | |||
3 | $ 406,000.00 | $ 406,000.00 | 0.7118 | $ 288,982.78 | |||
4 | $ 77,000.00 | $ - | $ 443,000.00 | $ 520,000.00 | 0.6355 | $ 330,469.40 | |
NPV | $ 236,938.15 | ||||||
Profitability index | Sum of PV of inflows/Outflow | =1010938.15/774000 | |||||
Profitability index | Sum of PV of inflows/Outflow | 1.30 | |||||
I need help in this question. Please answer 100% correctly I am not understanding why my...
Benson Delivery is a small company that transports business packages between New York and Chicago. It operates a fleet of small vans that moves packages to and from a central depot within each city and uses a common carrier to deliver the packages between the depots in the two cities. Benson Delivery recently acquired approximately $5.2 million of cash capital from its owners, and its president, George Hay, is trying to identify the most profitable way to invest these funds....
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Finch Delivery is a small company that transports business packages between New York and Chicago. It operates a fleet of small vans that moves packages to and from a central depot within each city and uses a common carrier to deliver the packages between the depots in the two cities. Finch Delivery recently acquired approximately $6.3 million of cash capital from its owners, and its president, George Hay, is trying to identify the most profitable way to invest these funds....
Finch Delivery is a small company that transports business packages between New York and Chicago. It operates a fleet of small vans that moves packages to and from a central depot within each city and uses a common carrier to deliver the packages between the depots in the two cities. Finch Delivery recently acquired approximately $6.2 million of cash capital from its owners, and its president, George Hay, is trying to identify the most profitable way to invest these funds....