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Acct 505 Exercise 13-14

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Acct 505 Exercise 13-14
NPV A
Item Years "Amt of
Cash Flow" "20%
FACTOR" "PV of
Cash Flows"
Annual Cost Savings 1 - 7 80000 3.605 288400
Initial Investment NOW -300000 1 -300000
Salvage Value 7 20000 0.279 5580
Net Present Value -6020

NPV B
Item Years "Amt of
Cash Flow" "20%
FACTOR" "PV of
Cash Flows"
Annual Cost Savings 1 - 7 60000 3.605 216300
Initial Investment NOW -300000 1 -300000
Working Capital Released 7 300000 0.279 83700
Net Present Value 0

NPV A
Item Years "Amt of
Cash Flow" "20%
FACTOR" "PV of
Cash Flows"
Annual Cost Savings 1 - 7 80000 3.605 288400
Initial Investment NOW -300000 1 -300000
Salvage Value 7 20000 0.279 5580
Net Present Value -6020

NPV B
Item Years "Amt of
Cash Flow" "20%
FACTOR" "PV of
Cash Flows"
Annual Cost Savings 1 - 7 60000 3.605 216300
Initial Investment NOW -300000 1 -300000
Working Capital Released 7 300000 0.279 83700
Net Present Value 0

NPV A
Item Years "Amt of
Cash Flow" "20%
FACTOR" "PV of
Cash Flows"
Annual Cost Savings 1 - 7 80000 3.605 288400
Initial Investment NOW -300000 1 -300000
Salvage Value 7 20000 0.279 5580
Net Present Value -6020

NPV B
Item Years "Amt of
Cash Flow" "20%
FACTOR" "PV of
Cash Flows"
Annual Cost Savings 1 - 7 60000 3.605 216300
Initial Investment NOW -300000 1 -300000
Working Capital Released 7 300000 0.279 83700
Net Present Value 0

NPV A
Item Years "Amt of
Cash Flow" "20%
FACTOR" "PV of
Cash Flows"
Annual Cost Savings 1 - 7 80000 3.605 288400
Initial Investment NOW -300000 1 -300000
Salvage Value 7 20000 0.279 5580
Net Present Value -6020

NPV B
Item Years "Amt of
Cash Flow" "20%
FACTOR" "PV of
Cash Flows"
Annual Cost Savings 1 - 7 60000 3.605 216300
Initial Investment NOW -300000 1 -300000
Working Capital Released 7 300000 0.279 83700
Net Present Value 0

NPV A
Item Years "Amt of
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