3.14 Topic 9
Exercises
9-16 (1) Present value = $293,372 (rounded)
9-18 Unadjusted rate of return = 10%
9-20 Net present value of cost of fire safety expert = $110,603 (rounded)
9-22 Total average cost of capital = 13.25%
9-24 (1) Present value of future cash inflow (20 years) = $599,189 (rounded)
Problems
9-28 Net present value = $17,596
9-30 (1) Internal rate of return = 10.55%
9-32 Internal rate of return = 12.41%
9-34 Net present value of Alternative 1 = ($35,102)
9-36 (1) Net present value to rent = $316,306