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952741 張芥華 982733 邱怡甯
971921 王群婷 982619 潘維揚
971925 楊智惟
(A) 2.5 years
(B) 2.0 years
(C) 2.2 years
(D) 2.4 years
ProjectYear 0
Cash FlowYear 1
Cash FlowYear 2
Cash FlowYear 3
Cash FlowYear 4
Cash FlowDiscount
RateA -100 40 50 60 N/A .15B -73 30 30 30 30 .15
ProjectYear 0
Cash FlowYear 1
Cash FlowYear 2
Cash FlowYear 3
Cash FlowYear 4
Cash FlowDiscount
Rate
A -100 40 50 60 N/A .15
B -73 30 30 30 30 .15
Answer: (D)
73/30=2.43
(A) 7.7%
(B) 21.6%
(C) 23.3%
(D) 42.9%
ProjectYear 0
Cash FlowYear 1
Cash FlowYear 2
Cash FlowYear 3
Cash FlowYear 4
Cash FlowDiscount
RateA -100 40 50 60 N/A .15B -73 30 30 30 30 .15
ProjectYear 0
Cash FlowYear 1
Cash FlowYear 2
Cash FlowYear 3
Cash FlowYear 4
Cash FlowDiscount
RateA -100 40 50 60 N/A .15
B -73 30 30 30 30 .15
Answer: (B)
(A) 21.6%
(B) 23.3%
(C) 42.9%
(D) 7.7%
ProjectYear 0
Cash FlowYear 1
Cash FlowYear 2
Cash FlowYear 3
Cash FlowYear 4
Cash FlowDiscount
RateA -100 40 50 60 N/A .15B -73 30 30 30 30 .15
ProjectYear 0
Cash FlowYear 1
Cash FlowYear 2
Cash FlowYear 3
Cash FlowYear 4
Cash FlowDiscount
RateA -100 40 50 60 N/A .15
B -73 30 30 30 30 .15
Answer: (B)
(A) You should accept project A since its IRR > 15%
(B) You should reject project B since its NPV > 0
(C) Your should accept project A since its NPV < 0
(D) You should accept project B since its IRR < 15%
ProjectYear 0
Cash FlowYear 1
Cash FlowYear 2
Cash FlowYear 3
Cash FlowYear 4
Cash FlowDiscount
RateA -100 40 50 60 N/A .15B -73 30 30 30 30 .15
Answer: (A)
(B) You can accept project B since NPV>0(C) You can accept project A since NPV>0(D) You should deny project B since its IRR >15%
You are considering purchasing a new automated forklift system for your firm's warehouse. The automated forklift will cost $500,000 and generate cash flows of $125,000 per year. The forklift will depreciate evenly over the five years, at which point it must be replaced. The cost of capital is 8% per year. Based upon the EVA investment rule, should you invest in the automated forklift?
Answer: NO
0 1 32 54
-500 250 250 250250 250
Because the EVA is negative, we will not take the project.
0 1 2 3 4 5
EVA
CapitalCash flow
Capital changeDepreciation
EVA
500 400125(40)
(100)-15
300125(32)
(100)-7
200125(24)
(100)1
100125(16)
(100)9
0125(8)
(100)17
PV of EVA