【正文】 .......... $ (441,600) 2. Traditional equipment (14% rate): Year Cash Flow df Present Value .................. 0 $(1,000,000) $(1,000,000) .................. 1 600,000 526,200 .................. 2 400,000 307,600 ............3–10 200,000 714,200 NPV .............................................................................................. $ 548,000 Contemporary technology: Year Cash Flow df Present Value .................. 0 $(4,000,000) $(4,000,000) .................. 1 200,000 175,400 .................. 2 400,000 307,600 .................. 3 600,000 405,000 469 .............. 4–6 800,000 1,253,600 .................. 7 1,000,000 400,000 8–10 ................ 2,000,000 1,858,000 NPV .............................................................................................. $ 399,600 3. The cost of capital is the rate that should be used—it usually reflects the opportunity cost of the funds needed to make the investment. A higher rate will bias against the acceptance of contemporary technology—which usually has large initial outlays and larger returns later in the life of the project. Notice how the use of the 14% rate moved the NPV of the contemporary technology alternative from a negative to a positive value. It’s enough of a movement that qualitative factors could now lead to the contemporary technology alternative being selected even though the other alternative still has a larger NPV. 470 20–15 Concluded 4. Traditional equipment: Year Cash Flow df Present Value .................. 0 $(1,000,000) $(1,000,000) .................. 1 600,000 526,200 .................. 2 400,000 307,600 ............3–10 100,000 357,100 NPV .............................................................................................. $ 190,900 The decision reverses。 df = Discount factor) CF() = $500,000 CF = $500,000/ = $108,155 454 20–3 1. NPV = P – I = ( ? $1,000,000) – $6,000,000 = ($665,000) The system should not be purchased. 2. df = Investment/Annual cash flow = $1,350,000/$217,350 = IRR = 6% The decision is good. The oute covers the cost of capital. 20–4 1. Payback period = Original investment/Annual cash inflow = $2,340,000/($3,042,000 – $2,340,000) = $2,340,000/$702,000 = years 2. a. Initial investment (Depreciation = $468,000): Accounting rate of return = Average ine/Investment = ($702,000 – $468,000)/$2,340,000 = 10% b. Average investment: Accounting rate of return = ($702,000 – $468,000)/[($2,340,000 + $0)/2] = $234,000/$1,170,000 = 20% 3. Year Cash Flow Discount Factor Present Value 0 ................... $(2,340,000) $(2,340,000) 1–5 ................. 702,000 2,661,282 NPV ....................................................................................................... $ 321,282 4. P = CF(df) = I for the IRR, thus, df = Investment/Annual cash flow = $2,340,000/$702,000 = For five years and a df of , the IRR is between 14% and 16% (approximately %). 455 20–5 Xray equipment: Year Cash Flow Discount Factor Present Value 0 .................. $(750,000) $(750,000) 1 .................. 375,000 334,875 2 .................. 150,000 119,550 3 .................. 300,000 213,600 4 .................. 150,000 95,400 5 .................. 75,000 42,525 NPV ...................................................................................................... $ 55,950 Biopsy equipment: Year Cash Flow Discount Factor Present Value 0 .................. $(750,000) $(750,000) 1 .................. 75,000 66,975 2 .................. 75,000 59,775 3 .................. 525,000 373,800 4 .................. 600,000 381,600 5 .................. 675,000 382,725 NPV ...................................................................................................... $ 514,875 20–6 1. Xray equipment: Payback period = $ 375,000 year 150,000 225,000 ($225,000/$300,000) $ 750,000 years Biopsy equipment: Payback period = $ 75,000 year 75,000 525,000 75,000 ($75,000/$600,000) $ 750,000 years This might be a reasonable strategy because payback is a rough measure of risk. The assumption is that the longer it takes a project to pay for itself, the riskier the project is. Other reasons might be that the firm might have liquidity 456 problems, the cash flows might be risky, or there might be a high risk of obsolescence. 20–6 Concluded 2. Xray equipment: Average cash flow = ($375,000 + $150,000 + $300,000 + $150,000 + $75,000)/5 = $210,000 Average depreciation = $750,000/5 = $150,000 Average ine = $210,000 – $150,000 = $60,000 Average investment = $750,000/2 = $375,000 Accounting rate of return = $60,000/$375,000 = 16% Biopsy equipment: Average cash flow = ($75,000 + $75,000 + $525,000 + $600,000 + $675,000)/5 = $390,000 Average investment = $750,000/2 = $375,000 Accounting rate of return = ($390,000 – $150,000*)/$375,000 = 64% *Average depreciation. 20–7 1. a. Return of the original investment .................................................... $370,000 b. Cost of capital ($370,000 ? 12%) ..................................................... 44,400 c. Profit earned on the investment ($450,000 – $414,400) ............. 35,600 Present value of profit: P = Future profit ? Discount factor = $35,600 ? = $31,791 2. Year Cash Flow Discount Factor Present Value 457 ............... 0 $(370,000) $(370,0