急急急----financial management 星期二交

[匿名]

2008-04-27 11:11 am

The company has settled on the NPV appraisal method, using a discount rate of 10% and it has HK$160,000 of capital available to invest in some of the following three projects A, B, and C, which have cash flows over the four years as follows:

Year A B C
0 (60,000) (70,000) (90,000)
1 30,000 35,000 30,000
2 12,000 25,000 30,000
3 20,000 30,000 30,000
4 28,000 40,000 70,000

(a) Advise how the capital be best invested in the projects.
(b) Calculate the combined NPV of the selected projects.

回答 (1)

用戶22404

2008-04-28 8:10 pm

✔ 最佳答案

(a) First we need to calculate the NPV for the 3 projects:

A

B

C

Year

PV

PV

PV

0

-60,000
-60,000

-70000
-70,000

-90000
-90000

1

30000
27272.73

35000
31818.18

30000
27272.73

2

12000
9917.355

25000
20661.16

30000
24793.39

3

20000
15026.3

30000
22539.44

30000
22539.44

4

28000
19124.38

40000
27320.54

70000
47810.94

11,341

32339.32

32416.5
As Projects B and C yield highest NPV with total initial investment of $160,000, they should be chosen.
(b) Combined NPV of Projects B and C = 32339.32+ 32416.5=64755.82

2008-04-28 15:26:27 補充：
cashflows/(1+r%)^n, n=number of years. Remember to choose my answer the best!

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