8. |
Delia Landscaping has the following Cash Flow from Assets over a 4-year period. |
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Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
|||
$-65,442 |
$164,153 |
$144,575 |
$165,591 |
$155,157 |
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What is the net present value of the company at a discount rate of 12%? |
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Calculation:
(NOTE: For time value of money calculations, show the calculator key and the calculated input).
Year | Cashflows | PVF at 11% | Present value | |
0 | -65442 | 1 | -65442 | |
1 | 164153 | 0.900901 | 147885.6 | |
2 | 144575 | 0.811622 | 117340.3 | |
3 | 165591 | 0.731191 | 121078.7 | |
4 | 155157 | 0.658731 | 102206.7 | |
Net Present value | 423069 | |||
Answer is $ 423069 | ||||
8. Delia Landscaping has the following Cash Flow from Assets over a 4-year period. Year 0...
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Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $173,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $110,000, variable costs of $27,700, and fixed costs of $12,300. The project will also require net working capital of $2,900 that will be returned at the end of the project....
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