Finance 5 textbook h/w
eddie297
ASSIGNMENT10_EXAMPLES.xlsxIRR_MIRR
| IRR VS MIRR | EAA | ||||||||||||
| CASH FLOWS | CASH FLOWS | ||||||||||||
| 0 | -6000 | 0 | -6000 | ||||||||||
| 1 | 2000 | 1 | 3000 | 243.43 | $97.89 | ||||||||
| 2 | 3000 | 2 | 3000 | 306.58 | $70.39 | ||||||||
| 3 | 4000 | 3 | -2000 | ||||||||||
| 4 | 4 | 5000 | |||||||||||
| 20.6% | 17.4% | 18.52% | 14.68% | ||||||||||
| IRR | MIRR | IRR | MIRR |
10.5_EX
| CAPITAL BUDGETING EXAMPLES | ||||||||
| Rate of Return | 10% | |||||||
| N | 6 | |||||||
| Initial Outlay | Cash Flow | |||||||
| 1 | 2 | 3 | 4 | 5 | 6 | |||
| -40000 | 10000 | 10000 | 10000 | 10000 | 10000 | 10000 | ||
| PAYBACK | -4 | |||||||
| Method 1 | Method 2 | |||||||
| NPV | $43,552.61 | $43,552.61 | $3,552.61 | NPV | ||||
| PI | 1.09 | |||||||
| IRR | 12.98% |
10.10_EX
| CAPITAL BUDGETING EXAMPLES | |||||||||||
| Initial Outlay | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | |
| -50000 | 9000 | 9000 | 9000 | 9000 | 9000 | 9000 | 9000 | 9000 | 9000 | 9000 | |
| NPV 10% | $55,301.10 | $5,301.10 | |||||||||
| NPV 15% | $45,168.92 | ($4,831.08) | |||||||||
| IRR | 12.41% | ||||||||||
| RATE | 12.41% |
10.30_EX
| COMPARE A VS B, SIZE DISPARITY | |||
| A | -500 | 700 | |
| B | -25000 | 30000 | |
| NPV A | $636.36 | $136.36 | |
| NPV B | $27,272.73 | $2,272.73 | |
| Method 1 | Method 2 | ||
| IRR A | 40.00% | 40.00% | |
| IRR B | 20.00% | 20.00% |
10.31_EX
| COMPARE A VS B, TIME DISPARITY | |||||||
| A | -25000 | 7500 | 7500 | 7500 | 7500 | 7500 | |
| B | -25000 | 0 | 0 | 0 | 0 | 50000 | |
| NPV A | $28,430.90 | $3,430.90 | |||||
| NPV B | $31,046.07 | $6,046.07 | |||||
| Method 1 | Method 2 | ||||||
| IRR A | 15.24% | 15.24% | |||||
| IRR B | 14.87% | 14.87% |
