3.14 Topic 9

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)

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