1 PV and NPV - Exercise 2 3 Below are multiple scenarios where each company needs assistance to calculate the Present Value, Net Present 4 Value, and Payback Period. 5 7 8 19 10 11 12 13 14 15 16 17 18 19 2 23 24 25 27 19 50 tob. A company is expecting to receive a stream of year-end annual cash payments over multiple years. Using the 21 PV formula in Excel, what is the present value of that money at three different discount rates shown below? Note: Your final answers should be displayed as a positive number. $ 31 Required a. A company is expecting to receive a lump sum of money at a future date from now. Using the PV formula in Excel, what is the present value of that money at three different discount rates shown below? Note: Your final answers should be displayed as a positive number. 15 Future value to be receive $ Future date received 26 37 Discount Rate 10% 14% 20% Annual Cash Receipt Number of Years 10,000 Discount Rate 10% 14% 20% 2 years Present Value ? ? ? 5,000 5 years 13 2c. A company is planning to invest in a project over a 5-year period, but wants to know its financial implications. It expects the cash in-flow return on the investment to steadily increase over the 5 years. Using the information below, help determine the Total Net Cash Flows, the Net Present Value and the estimated Payback Period. Note: Estimate the payback period to the nearest year. Discount Rate 12% Present Value ?
1 PV and NPV - Exercise 2 3 Below are multiple scenarios where each company needs assistance to calculate the Present Value, Net Present 4 Value, and Payback Period. 5 7 8 19 10 11 12 13 14 15 16 17 18 19 2 23 24 25 27 19 50 tob. A company is expecting to receive a stream of year-end annual cash payments over multiple years. Using the 21 PV formula in Excel, what is the present value of that money at three different discount rates shown below? Note: Your final answers should be displayed as a positive number. $ 31 Required a. A company is expecting to receive a lump sum of money at a future date from now. Using the PV formula in Excel, what is the present value of that money at three different discount rates shown below? Note: Your final answers should be displayed as a positive number. 15 Future value to be receive $ Future date received 26 37 Discount Rate 10% 14% 20% Annual Cash Receipt Number of Years 10,000 Discount Rate 10% 14% 20% 2 years Present Value ? ? ? 5,000 5 years 13 2c. A company is planning to invest in a project over a 5-year period, but wants to know its financial implications. It expects the cash in-flow return on the investment to steadily increase over the 5 years. Using the information below, help determine the Total Net Cash Flows, the Net Present Value and the estimated Payback Period. Note: Estimate the payback period to the nearest year. Discount Rate 12% Present Value ?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter15: Ratio Analysis (ratioa)
Section: Chapter Questions
Problem 2R: The comparative financial statements of Global Technology are as follows: Open the file RATIOA from...
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Question
c. A company is planning to invest in a project over a 5-year period, but wants to know its financial implications. |
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It expects the cash in-flow return on the investment to steadily increase over the 5 years. Using the information |
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below, help determine the Total Net Cash Flows, the |
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Note: Estimate the payback period to the nearest year. |
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Discount Rate |
12% |
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Investment Project |
Cash Flow |
Total Net Cash Flow |
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Initial Investment |
$ (5,000) |
? |
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Year 1 |
$ 800 |
? |
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Year 2 |
$ 900 |
? |
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Year 3 |
$ 1,500 |
? |
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Year 4 |
$ 1,800 |
? |
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Year 5 |
$ 3,200 |
? |
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NPV of investment |
? |
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Estimated Payback Period |
|
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