| | Week 3 Template |
| | Given Information | | Penang, Malaysia | | | Given Information | | | Kuala Lumpur, Malaysia |
| | Initial cash outlay | | $ 6,000,000 | | | Initial cash outlay | | | $ 4,500,000 |
| | Useful life | | 20 | | | Useful life | | | 20 |
| | Operating income | | 1,750,000 | | | Operating income | | | 1,050,000 |
| | The cost of capital | | 9% | | | The cost of capital | | | 9% |
| | Tax rate | | 40% | | | Tax rate | | | 40% |
| | Net cash flow | | Net Income | Cash Flow | | Net cash flow | | Net Income | Cash Flow |
| | Operating income | | | | | Operating income |
| | Depreciation | | | | | Depreciation |
| | Net Income before taxes | | - 0 | | | Net Income before taxes | | - 0 |
| | Tax, 40% | | - 0 | - 0 | | Tax, 40% | | - 0 | - 0 |
| | Net Income | | $ - 0 | | | Net Income | | $ - 0 |
| | Net cash flow | | | $ - 0 | | Net cash flow | | | $ - 0 |
| | Average net income and average book value of investment | | | | | Average net income and average book value of investment |
| | | Year | Net Income | Avg BV of Investment | | | Year | Net Income | Avg BV of Investment |
| | | 1 | $ - 0 | | | | 1 | - 0 |
| | | 2 | - 0 | | | | 2 | - 0 |
| | | 3 | - 0 | | | | 3 | - 0 |
| | | 4 | - 0 | | | | 4 | - 0 |
| | | 5 | - 0 | | | | 5 | - 0 |
| | | 6 | - 0 | | | | 6 | - 0 |
| | | 7 | - 0 | | | | 7 | - 0 |
| | | 8 | - 0 | | | | 8 | - 0 |
| | | 9 | - 0 | | | | 9 | - 0 |
| | | 10 | - 0 | | | | 10 | - 0 |
| | | 11 | - 0 | | | | 11 | - 0 |
| | | 12 | - 0 | | | | 12 | - 0 |
| | | 13 | - 0 | | | | 13 | - 0 |
| | | 14 | - 0 | | | | 14 | - 0 |
| | | 15 | - 0 | | | | 15 | - 0 |
| | | 16 | - 0 | | | | 16 | - 0 |
| | | 17 | - 0 | | | | 17 | - 0 |
| | | 18 | - 0 | | | | 18 | - 0 |
| | | 19 | - 0 | | | | 19 | - 0 |
| | | 20 | - 0 | | | | 20 | - 0 |
| | | Average | $ - 0 | ERROR:#DIV/0! | | | Average | - 0 | ERROR:#DIV/0! |
| a. | Average rate of return on investment | | | | a. | Average rate of return on investment |
| | Type the formula here. Put the answer in D49 | | | | | Type the formula here. Put the answer in I49 |
| b. | Payback period | | | | b. | Payback period |
| | Type the formula here. Put the answer in D53 | | | years | | Type the formula here. Put the answer in I53 | | | years |
| c. | Net present value - using table page 126 | | | | c. | Net present value - using table page 126 |
| | | Amount | Factor | Present value | | | Amount | Factor | Present value |
| | Initial investment | | | $ - 0 | | Initial investment | | | $ - 0 |
| | Annual net cash flow for 20 years | | | - 0 | | Annual net cash flow for 20 years | | | - 0 |
| | Net present value | | | $ - 0 | | Net present value | | | $ - 0 |
| | Using MS Excel: | | | | | Using MS Excel: |
| | Initial investment | | | | | Initial investment |
| | PV of Annual net cash flow for 20 years | | | | | PV of Annual net cash flow for 20 years |
| | Net present value | | | $ - 0 | | Net present value | | | $ - 0 |
| d. | Profitability Index | | | | d. | Profitability Index |
| | Type the formula here. Put the answer in D68 | | | | | Type the formula here. Put the answer in I68 | | 0.00 |
| d. | Internal rate of return | | | | e. | Internal rate of return |
| | Using MS Excel: | | | | | Using MS Excel: | | ERROR:#NUM! |
| Period | | | | | Period |
| 0 | | | | | 0 |
| 1 | | | | | 1 |
| 2 | | | | | 2 |
| 3 | | | | | 3 |
| 4 | | | | | 4 |
| 5 | | | | | 5 |
| 6 | | | | | 6 |
| 7 | | | | | 7 |
| 8 | | | | | 8 |
| 9 | | | | | 9 |
| 10 | | | | | 10 |
| 11 | | | | | 11 |
| 12 | | | | | 12 |
| 13 | | | | | 13 |
| 14 | | | | | 14 |
| 15 | | | | | 15 |
| 16 | | | | | 16 |
| 17 | | | | | 17 |
| 18 | | | | | 18 |
| 19 | | | | | 19 |
| 20 | | | | | 20 |
dappy7000
Week3Template_FallTerm1.xlsx
