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Lockheed
Lockheed
Years 0 1 2 3 4 5 6 7
Money Flow -35000 5000 5000 5000 5000 5000 5000 5000
[B]
Years 0 1 2 3
-35000 4500 4500 4500
[C]
31250 50000
NPV -3750 npv 15000 irr
No
2)
Add a new window
-75000 44000 44000 44000
IRR 35%
Disc Rate 15%
NPV 25461.91
3)
-1000000 371739 371739 371739 371739
[B] 743478
Shortfall -256522 pay this amt at End of 2 yrs 962804
[C] -112666
[D] 0.243478
ans is C
Syllabus
Working capital
discount
take discount or not
Cap budgeting cases
quest are open ended
Bullet points
Comment + Calculate type of quest
Butler lumber case is imp for next class
8 9 10 11 12 13 14 15
5000 5000 5000 5000 5000 5000 5000 5000
n
4500
15.43