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Case 5.10-3 Truck

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Case 5.10-3 Truck
Ciara Wilson Homework Week 5 10-8 Truck: NPV = -$17,100 + $5,100(PVIFA14%,5) = -$17,100 + $5,100(3.4331) = -$17,100 + $17,509 = $409. (Accept) Financial calculator: Input the appropriate cash flows into the cash flow register and then solve for IRR = 14.99% ≈ 15%. MIRR: 14.54% Pulley System: NPV = -$22,430 + $7,500(3.4331) = -$22,430 + $25,748 = $3,318. (Accept) Financial calculator: Input the appropriate cash flows into the cash flow register and then solve for IRR = 20%. MIRR: 17.19%. 10-9
Gas:
Year 1: 5000; Year 2: 5000; Year 3: 5000; Year 4: 5000; Year 5: 5000; Year 6: 5000
NPV= -17,500
4464.29
3985.97
3558.90
3177.59
2837.13
2533.16
NPVg= $3057
IRRg= 18%

Electric:
Year

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