| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
Statement 1 | Statement 2 |
| ||||
| ||||
|
| ||
| ||
|
Statement 1 | Statement 2 |
| ||||
| ||||
|
| ||
| ||
|
| ||
| ||
|
Sparkle and Fizz | Opportunity to invest in Bubble |
| ||||
| ||||
|
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
Years | 0 | 1 | 2 | 3 | 4 | 5 |
Cash Flows | -$150,000 | $30,000 | $30,000 | $30,000 | $30,000 | $35,000 |
$150,000 | |
120,000 | (4 years)(30,000/year) |
$30,000 |
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
Projects A and B are mutually exclusive. What should the company do?
Project A Project B Cost $15,000 $25,000 Life 5 years 5 years Cash inflows $5,000/year $7,500/year
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
NPV | IRR |
| ||||
| ||||
|
Payback Period | NPV |
| ||||
| ||||
|
WACC = (wd × kd) × (1 − t) + (we × ke) = (0.286 × 0.07 × 0.66) + (0.714 × 0.14) = 0.0132 + 0.100 = 0.1132Third, calculate the PV of the project cash flows
90 / (1 + 0.1132)1 + 90 / (1 + 0.1132)2 + 90 / (1 + 0.1132)3 = $218,716And finally, calculate the project NPV by subtracting out the initial cash flow
NPV = $218,716 − $200,000 = $18,716
| ||
| ||
|
wd + we = 1
we = 1 − wd
wd / we = 0.40
wd = 0.40 × (1 − wd)
wd = 0.40 − 0.40wd
1.40wd = 0.40
wd = 0.286, we = 0.714
Third, calculate the PV of the project cash flows
WACC = (wd × kd) × (1 − t) + (we × ke) = (0.286 × 0.06 × 0.66) + (0.714 × 0.12) = 0.0113 + 0.0857 = 0.0970
N = 5, PMT = -3,000, FV = 0, I/Y = 9.7, CPT → PV = 11,460
NPV = $11,460 − $10,000 = $1,460
| ||
| ||
|
| ||
| ||
|
Payback Period | Discounted Payback Period |
| ||||
| ||||
|
3,000 / (1 + .10)1 = 2,727
2,000 / (1 + .10)2 = 1,653
2,000 / (1 + .10)3 = 1,503.
5,000 - (2,727 + 1,653) = 620
620 / 1,503 = .4.
So, 2 + 0.4 = 2.4.
NPV | IRR | Accept/Reject |
| |||||
| |||||
|
Year | Cash Flow |
0 | −$200,000 |
1 | 60,000 |
2 | 80,000 |
3 | 70,000 |
4 | 60,000 |
5 | 50,000 |
| ||
| ||
|
Year | Cash Flow | Discounted Cash Flow | Cumulative Discounted Cash Flow |
0 | −$200,000 | −$200,000.00 | −$200,000.00 |
1 | 60,000 | 53,571.43 | −146,428.57 |
2 | 80,000 | 63,775.51 | −82,653.06 |
3 | 70,000 | 49,824.62 | −32,828.44 |
4 | 60,000 | 38,131.08 | 5,302.64 |
5 | 50,000 | 28,371.30 | 33,673.98 |
[td=1,1,100]NPV | Accept / Reject |
| ||||
| ||||
|
wd + we = 1
wd = 0.50We
0.5We + We = 1
wd = 0.333, we = 0.667
WACC = (wd × kd) × (1 − t) + (we × ke) = (0.333 × 0.09 × 0.67) + (0.667 × 0.15) = 0.020 + 0.100 = 0.120
N = 8, PMT = -1,000, FV = 0, I/Y = 12, CPT PV = 4,967
NPV = $4,967 − $5,000 = -$33
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
Year | Project 1 Cash Flow | Project 2 Cash Flow |
0 | −$4.0 | ? |
1 | $3.0 | $1.7 |
2 | $5.0 | $3.2 |
3 | $2.0 | $5.8 |
B) | −$5.70. |
C) | −$4.22. |
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
| ||
| ||
|
Firm ownership | Company size |
| ||||
| ||||
|
Location | Management education |
| ||||
| ||||
|
| ||
| ||
|
欢迎光临 CFA论坛 (http://forum.theanalystspace.com/) | Powered by Discuz! 7.2 |