ACC-Writing W6 - Writing assignment Week 6 PDF

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Writing assignment Week 6...

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Option 1 Y0 Revenue Equipment Materials Labor Maintenance Cost Total Cash in (out) Depreciation Net Income PV Factor (8%) Present Value

Y1

Y2 Y3 75.000 100.000

-

Y4 125.000

Y5 150.000

Y6 150.000

Y7 150.000

- 10.000 - 10.000 - 78.786 - 81.149 - 2.700 - 2.781 58.514 56.070 - 9.286 - 9.286 49.229 46.784 0,681 0,630 39.848 35.324 NVP =

- 10.000 - 83.584 - 2.781 53.635 - 9.286 44.350 0,583 31.269 - 11.496

- 65.000 - 65.000 1,000 - 65.000 -

15.000 70.000 2.700 87.700 9.286 96.986 0,926 81.210

-

10.000 72.100 2.700 9.800 9.286 19.086 0,857 - 8.399

- 10.000 - 74.263 - 2.700 13.037 - 9.286 3.751 0,794 10.351

10.000 76.491 2.700 35.809 9.286 26.523 0,735 26.320

Y3 95.000

Y4 130.000

Option 2 Revenue Equipment Materials Labor Maintenance Cost Total Cash in (out) Depreciation Net Income PV Rate 8% Present Value

Y0 - 85.000 - 85.000 1,000 - 85.000 -

Y1

Y2 80.000

20.000 60.000 3.500 83.500 10.286 93.786 0,926 77.321

-

15.000 61.800 3.500 300 10.286 10.586 0,857 257

- 15.000 - 15.000 - 63.654 - 65.564 - 3.500 - 3.500 12.846 45.936 - 10.286 - 10.286 2.560 35.651 0,794 0,735 10.200 33.763

Y5 140.000

Y6 150.000

- 15.000 - 15.000 - 67.531 - 69.556 - 3.500 - 3.605 53.969 61.839 - 10.286 - 10.286 43.684 51.553 0,681 0,630 36.753 38.958 NVP =

-

Y7 160.000 13.000 15.000 71.643 3.605 82.752 10.286 72.466 0,583 48.244 5.341

Option 1 PV Factor (8%) Present Value

Y0 Y1 1,000 0,926 - 65.000 - 81.210 -

Y2 0,857 8.399

Y3 0,794 10.351

Y4 0,735 26.320

Y5 0,681 39.848

PV Factor (6%) Present Value

1,000 0,943 - 65.000 - 82.701 -

0,890 8.722

0,840 10.951

0,792 28.361

0,747 43.710

PV Factor (7%) Present Value

1,000 0,935 - 65.000 - 82.000 -

0,873 8.555

0,816 10.638

0,763 27.322

0,713 41.721

Y5 0,681 36.753

Diff IRR

Y6 Y7 0,630 0,583 35.324 31.269 NVP = - 11.496 0,705 0,665 39.529 35.668 NVP = 1.796 0,666 0,623 37.342 33.415 NVP = - 5.116

PV Rate PV Y1-Y7 Invest 6,0% 66.796 66.796 7,0% 59.884 65.000 1,0% 6.912 1.796 6%+(1.796/6.912)*1% = 6,3%

Option 2 PV Rate 8% Present Value

Y0 Y1 1,000 0,926 - 85.000 - 77.321 -

Y2 0,857 257

Y3 0,794 10.200

Y4 0,735 33.763

PV Rate 9% Present Value

1,000 0,917 - 85.000 - 76.570 -

0,842 253

0,772 9.917

0,708 32.523

Diff IRR

PV Rate PV Y1-Y7 Invest 8,0% 90.341 90.341 9,0% 82.819 85.000 1,0% 7.522 5.341 8%+(5.341/7.522)*1% = 8,7%

Y6 0,630 38.958 NVP = 0,650 0,596 35.080 36.856 NVP = -

Y7 0,583 48.244 5.341 0,547 45.265 2.181

Year Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7

Option 1 Inflow

Outflow 65.000 -

Payback Period :

87.700 9.800 13.037 35.809 58.514 56.070 53.635

Unrecovered 65.000 152.700 162.500 149.463 113.654 55.140 930 54.566

Option 2 Inflow

Outflow 85.000 -

5+(55.140/56.070)*1=5,98 year

83.500 300 12.846 45.936 53.969 61.839 82.752

-

Unrecovered 85.000 168.500 168.800 155.954 110.018 56.049 5.790 88.542

5+(56.049/56.049)*1=5,91 year

Option 1 Y0 65.000 -

Net Income ARR :

Y1 96.986 -

Y2 19.086

Y3 3.751

Y4 26.523

Y5 49.229

Y6 46.784 AVERAGE

Y7 44.350 7.795

Y3 2.560

Y4 35.651

Y5 43.684

Y6 51.553 AVERAGE

Y7 72.466 14.506

(7.795 / 65.000)*100% = 11,99%

Option 2 Y0 85.000 -

Net Income ARR :

Y1 93.786 -

Y2 10.586

(14.506 / 85.000)*100% = 17,07%

Method NVP IRR Payback Period ARR

Option 1 (11.496) 6,30% 5,98 Year 11,99%

Option 2 5.341 8,70% 5,91 Year 17,07%...