Scribd Logo
Upload

Welcome to Scribd!

  • 33 views

    M2 CPR Consuegra

    Uploaded by

    Eliza Gail Consuegra
    This document calculates the present values of 4 projects (Project A, B, C, D) using cash flows and a discount rate of 12% over 10 years. It then calculates the equivalent worth of Project A, which has the highest present worth of $8,995.48. Therefore, Project A will provide the highest return and is the recommended project.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    M2 CPR Consuegra

    Uploaded by

    Eliza Gail Consuegra
    33 views2 pages
    This document calculates the present values of 4 projects (Project A, B, C, D) using cash flows and a discount rate of 12% over 10 years. It then calculates the equivalent worth of Project A, which has the highest present worth of $8,995.48. Therefore, Project A will provide the highest return and is the recommended project.

    Original Description:

    Original Title

    M2-CPR-CONSUEGRA.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document calculates the present values of 4 projects (Project A, B, C, D) using cash flows and a discount rate of 12% over 10 years. It then calculates the equivalent worth of Project A, which has the highest present worth of $8,995.48. Therefore, Project A will provide the highest return and is the recommended project.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    33 views2 pages

    M2 CPR Consuegra

    Uploaded by

    Eliza Gail Consuegra
    This document calculates the present values of 4 projects (Project A, B, C, D) using cash flows and a discount rate of 12% over 10 years. It then calculates the equivalent worth of Project A, which has the highest present worth of $8,995.48. Therefore, Project A will provide the highest return and is the recommended project.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    CE40-2 / E01

    CONSUEGRA, Eliza Gail Roque October 16, 2020


    2018102337 CE-2

    M2-CLASS PRODUCED REVIEWER

    Calculating the Present Values (PV) of all projects:

    PROJECT A:
    PW = -150 , 000 + ( 28 , 000 - 1 , 000 )( P / A,12%,10 ) + 20 ,000 ( P / F,12%,10 )
    = -150 , 000 + 152 ,556.02 + 6 , 439.46 = 8 , 995.48

    PROJECT B:
    PW = - 85 , 000 + ( 16 , 000 - 550 ) ( P / A,12%,10 ) + 10, 000 ( P / F,12%,10 ) = - 85 , 000 + 87 , 295.95 + 3 ,219.73
    = 5,515.68

    PROJECT C:
    PW = - 75,000 + ( 15, 000 - 500 )( P / A,12%,10 ) + 6, 000 ( P / F,12%,10 ) = - 7 5 , 000 + 81,928.23 + 1,931.84
    = 8 ,860.07

    PROJECT D:
    PW = - 120,000 + ( 2 2,000 - 7 00 )( P / A,12%,10 ) + 11,000 ( P / F,12%,10 ) = -1 20, 000 + 120,349.26 + 3,541.71
    = 3,890.97

    The project having the highest Present Worth (PW) will be having the highest Equivalent Worth (EW).
    Therefore, project A will have the highest EW with a PW of $8,995.48.
    PW A 8995.48
    EW A = = = 1,592.06
    ( P / A,r,n ) ( P / A,12%,10 )

    You might also like