Homework Answers
Answer #1
| Project A | for project B | |||||||||
| interest rate | PV initial cost | PV annual cost | PV of salvage | NPV | PV iniitial cost | PV annual cost | PV salvage | NPV | ||
| 0 | -700000 | -200000 | 175000 | -725000 | -500000 | -550000 | 125000 | -925000 | ||
| 1 | -700000 | -194137.2496 | 166506.5 | -727631 | -500000 | -533877.4363 | 118933.21 | -914944 | ||
| 2 | -700000 | -188538.3803 | 158502.9 | -730035 | -500000 | -518480.5459 | 113216.35 | -905264 | ||
| 3 | -700000 | -183188.2875 | 150956.5 | -732232 | -500000 | -503767.7906 | 107826.1 | -895942 | ||
| 4 | -700000 | -178072.8932 | 143837.2 | -734236 | -500000 | -489700.4564 | 102740.89 | -886960 | ||
| 5 | -700000 | -173179.0668 | 137117.1 | -736062 | -500000 | -476242.4338 | 97940.771 | -878302 | ||
| 6 | -700000 | -168494.5514 | 130770.2 | -737724 | -500000 | -463360.0164 | 93407.272 | -869953 | ||
| 7 | -700000 | -164007.8974 | 124772.6 | -739235 | -500000 | -451021.718 | 89123.272 | -861898 | ||
| 8 | -700000 | -159708.4015 | 119102.1 | -740606 | -500000 | -439198.1041 | 85072.9 | -854125 | ||
| 9 | -700000 | -155586.0505 | 113738 | -741848 | -500000 | -427861.639 | 81241.423 | -846620 | ||
| 10 | -700000 | -151631.4708 | 108661.2 | -742970 | -500000 | -416986.5446 | 77615.165 | -839371 | ||
| 11 | -700000 | -147835.8807 | 103854 | -743982 | -500000 | -406548.6719 | 74181.416 | -832367 | ||
| 12 | -700000 | -144191.0481 | 99299.7 | -744891 | -500000 | -396525.3823 | 70928.357 | -825597 | ||
| 13 | -700000 | -140689.2505 | 94982.99 | -745706 | -500000 | -386895.4388 | 67844.992 | -819050 | ||
| 14 | -700000 | -137323.2388 | 90889.52 | -746434 | -500000 | -377638.9066 | 64921.083 | -812718 | ||
| 15 | -700000 | -134086.2039 | 87005.93 | -747080 | -500000 | -368737.0608 | 62147.092 | -806590 | ||
| 16 | -700000 | -130971.7461 | 83319.78 | -747652 | -500000 | -360172.3019 | 59514.127 | -800658 | ||
| 17 | -700000 | -127973.8465 | 79819.45 | -748154 | -500000 | -351928.0779 | 57013.894 | -794914 | ||
| 18 | -700000 | -125086.8408 | 76494.11 | -748593 | -500000 | -343988.8123 | 54638.652 | -789350 | ||
| 19 | -700000 | -122305.3956 | 73333.64 | -748972 | -500000 | -336339.8379 | 52381.171 | -783959 | ||
| 20 | -700000 | -119624.4856 | 70328.58 | -749296 | -500000 | -328967.3354 | 50234.697 | -778733 | ||
| 21 | -700000 | -117039.3734 | 67470.08 | -749569 | -500000 | -321858.277 | 48192.911 | -773665 | ||
| 22 | -700000 | -114545.5905 | 64749.87 | -749796 | -500000 | -315000.3738 | 46249.907 | -768750 | ||
| 23 | -700000 | -112138.9191 | 62160.21 | -749979 | -500000 | -308382.0276 | 44400.152 | -763982 | ||
| 24 | -700000 | -109815.3766 | 59693.85 | -750122 | -500000 | -301992.2858 | 42638.468 | -759354 | ||
| 25 | -700000 | -107571.2 | 57344 | -750227 | -500000 | -295820.8 | 40960 | -754861 | ||
| 26 | -700000 | -105402.8318 | 55104.28 | -750299 | -500000 | -289857.7874 | 39360.199 | -750498 | ||
| 27 | -700000 | -103306.9072 | 52968.72 | -750338 | -500000 | -284093.9949 | 37834.797 | -746259 | ||
| 28 | -700000 | -101280.2422 | 50931.7 | -750349 | -500000 | -278520.6661 | 36379.788 | -742141 | ||
| 29 | -700000 | -99319.8218 | 48987.98 | -750332 | -500000 | -273129.51 | 34991.411 | -738138 | ||
| 30 | -700000 | -97422.79009 | 47132.59 | -750290 | -500000 | -267912.6727 | 33666.134 | -734247 | ||
| 31 | -700000 | -95586.44029 | 45360.89 | -750226 | -500000 | -262862.7108 | 32400.636 | -730462 | ||
| 32 | -700000 | -93808.20578 | 43668.51 | -750140 | -500000 | -257972.5659 | 31191.794 | -726781 | ||
| 33 | -700000 | -92085.65166 | 42051.34 | -750034 | -500000 | -253235.5421 | 30036.672 | -723199 | ||
| 34 | -700000 | -90416.46686 | 40505.51 | -749911 | -500000 | -248645.2839 | 28932.504 | -719713 | ||
| 35 | -700000 | -88798.45691 | 39027.36 | -749771 | -500000 | -244195.7565 | 27876.688 | -716319 | ||
| 36 | -700000 | -87229.53702 | 37613.48 | -749616 | -500000 | -239881.2268 | 26866.771 | -713014 | ||
| 37 | -700000 | -85707.72575 | 36260.62 | -749447 | -500000 | -235696.2458 | 25900.442 | -709796 | ||
| 38 | -700000 | -84231.13903 | 34965.73 | -749265 | -500000 | -231635.6323 | 24975.522 | -706660 | ||
| 39 | -700000 | -82797.98459 | 33725.94 | -749072 | -500000 | -227694.4576 | 24089.956 | -703605 | ||
| 40 | -700000 | -81406.55679 | 32538.53 | -748868 | -500000 | -223868.0312 | 23241.804 | -700626 | ||
| 41 | -700000 | -80055.23168 | 31400.93 | -748654 | -500000 | -220151.8871 | 22429.234 | -697723 | ||
| 42 | -700000 | -78742.46249 | 30310.73 | -748432 | -500000 | -216541.7719 | 21650.518 | -694891 | ||
| 43 | -700000 | -77466.77533 | 29265.63 | -748201 | -500000 | -213033.6322 | 20904.021 | -692130 | ||
| 44 | -700000 | -76226.76519 | 28263.48 | -747963 | -500000 | -209623.6043 | 20188.198 | -689435 | ||
| 45 | -700000 | -75021.09219 | 27302.22 | -747719 | -500000 | -206308.0035 | 19501.589 | -686806 | ||
| 46 | -700000 | -73848.47803 | 26379.94 | -747469 | -500000 | -203083.3146 | 18842.813 | -684241 | ||
| 47 | -700000 | -72707.70274 | 25494.79 | -747213 | -500000 | -199946.1825 | 18210.562 | -681736 | ||
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