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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 401 Weeks Ago, 4 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Find the NPV and PI of a project that costs $1,500 and returns $800 in Year 1 and $850 in Year 2. Assume the project’s cost of capital is 8 percent.
PV of cash inflows = $800/1.08 + $850/(1.08)2 = $?
PV of cash outflows = $?
NPV = $1469.48 – 1,500 = $–30.52
PI = $1,469.48/1,500 = ?
3. Find the IRR of a project that returns $17,000 three years from now if it costs $12,000.
FV = PV × (1 + r)n = $17,000 = 12,000 = (1 + IRR)3
IRR = ?%
AA Auto Parts Company has a corporate tax rate of 34 percent and depreciation of $19,180. Compute its depreciation tax shield.
$19,180 x ? = $?
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