Case Analysis Assignment 2 Tables
Case Analysis Assignment 2 Tables
($300,000)
($700,000)
($800,000)
Initial Expenditures
$510,000
Year 1
Year 3
Year 4
Year 5
$112,300
11,250
63,000
38,050
12,557
$25,494
$63,000
$88,494
$225,000
11,250
63,000
150,750
49,748
$101,003
$63,000
$164,003
$168,750
11,250
63,000
94,500
31,185
$63,315
$63,000
$126,315
Year 2
Year 3
Year 4
Year 5
$175,000
26,250
17,500
131,250
43,313
$87,938
$17,500
$105,438
$262,500
26,250
17,500
218,750
72,188
$146,563
$17,500
$164,063
$393,750
26,250
17,500
350,000
115,500
$234,500
$17,500
$252,000
$525,000
26,250
17,500
481,250
158,813
$322,438
$17,500
$339,938
Year 1
Year 2
Year 3
Year 4
Year 5
$100,000
40,000
120,000
-60,000
0
($60,000)
$120,000
$60,000
$200,000
40,000
176,000
-16,000
0
($16,000)
$176,000
$160,000
$300,000
40,000
168,000
92,000
30,360
$61,640
$168,000
$229,640
$450,000
40,000
168,000
242,000
79,860
$162,140
$168,000
$330,140
$600,000
40,000
168,000
392,000
129,360
$262,640
$168,000
$430,640
Year 1
Year 2
Year 3
Year 4
Year 5
$382,500
$325,125
$43,000
11,250
45,000
-13,250
0
($13,250)
$45,000
$31,750
Year 1
$87,500
26,250
17,500
43,750
14,438
$29,313
$17,500
$46,813
Year 2
$76,800
11,250
66,000
-450
0
($450)
$66,000
$65,550
$89,250
$76,500
$51,000
($510,000)
19,125
76,500
286,875
94,669
$192,206
$76,500
$268,706
19,125
112,200
193,800
63,954
$129,846
$112,200
$242,046
25,500
107,100
-43,350
0
($43,350)
$107,100
$63,750
31,875
107,100
-62,475
0
($62,475)
$107,100
$44,625
38,250
107,100
-94,350
0
($94,350)
$107,100
$12,750
Question 1
Refer to Tables 1 through 4. Add up the total increase in aftertax income for e
project.
Given what you know about Kay Marsh, to which project do you think she wi
attracted?
Year
Year
Year
Year
Year
Total
1
2
3
4
5
820752
410420
121877
Given what we know about Kay Marsh, she will most likely be atrracted to Proj
e atrracted to Project B
Question 2
Compute the payback period, internal rate of return (IRR), net present valu
profitability index of all four alternatives based on cash flow. Use 10% for the d
your calculations.
Project A
PayBack Period
Internal Rate of Return
Net Present Value
Profitability Index
Project B
Project C
Project D
Question 3
on 3
Question 4
on 4
hould be chosen?
of the IRR method?
mit on the size of the capital budget, would
lternatives? If not, which one(s) would be
d why?
Question 5
on 5