noel

9. Got it, thank you
33. You’re correct if you do it that way but they write “the increase in net workign capital will be recovered when the project is finished.” So if, in year 5 CF you add 35,000 to the 79,200 then you get an NPV of 127,817.99.

KungFuPanda

QUANT:
9. They say that c1 is statistically significantly different from zero. I see that the t-stat is 11.405, but how do we know for sure without a t-crit (i.e. should we just assume that such a high t-stat is definitely statistically significant?) Also, what does the last column “significance of t” mean–the “0.000” threw me off into thinking the t-stat was not significant, but now I am thinking that the number there is the number in your null hypothesis?
the 0.000 at the end was the “p-value” of the test… so it would be significant even at 0% level of significance.
33. I did do it the long way and got 4445 as the difference.
-185 66 69.6 75 82.2 91.2 - NPV=101.641
New
-185 73.998 84.27 71.886 74.646 79.20 NPV=106.085