【正文】 I = df ? CF $120,000 = $162,708/(1 + i)2 (1 + i)2 = $162,708/$120,000 = 1 + i = IRR = % IRR System II: df = I/CF = $120,000/$76,628 = From Exhibit 20B2, IRR = 18% System II should be chosen using IRR. 2. Modified parison: Year System I System II ..................... 0 $(120,000) $(120,000) ..................... 1 — — ..................... 2 162,708 160,919* *($76,628 ? ) + $76,628 Notice that the future value of System I is greater than that of System II and thus maximizes the value of the firm. NPV signals the correct choice, whereas IRR would have chosen System II. 20–11 Project I: CF = NI + Noncash expenses = $18,000 + $15,000 = $33,000 Project II: CF = –(1 – t) ? (Cash expenses) + (t ? Noncash expenses) = – ? ($30,000) + ( ? $30,000) = –$18,000 + $12,000 = ($6,000) 462 20–12 1. Year Depreciation tNC df Present Value ........... 1 $3,000 $1,200 $ 1,072 ........... 2 6,000 2,400 1,913 ........... 3 6,000 2,400 1,709 ........... 4 3,000 1,200 763 $ 5,457 2. Year Depreciation tNC df Present Value ........... 1 $6,000 $2,400 $ 2,143 ........... 2 8,000 3,200 2,550 ........... 3 2,666 1,066 759 ........... 4 1,334 534 340 $ 5,792 3. MACRS increases the present value of tax shielding by increasing the amount of depreciation in the earlier years. 463 20–13 1. $10,000 – $25,000 = $ (15,000) loss ? tax rate $ 6,000 tax savings Sales price .............. $10,000 Tax savings ............ 6,000 ....Net proceeds $ 16,000 Total cost of new press .......................... $ 50,000 Less: proceeds of old press .......... (16,000) Net investment (cash outflow) $ 34,000 2. Year (1 – t)Ca tNCb CF ............... 1 $(1,200) 2,400 $1,200 ............... 2 (1,200) 3,840 2,640 ............... 3 (1,200) 2,304 1,104 ............... 4 (1,200) 1,382 182 a (1 – ) ? $2,000. b ()($30,000)(). ()($30,000)(). ()($30,000)(). ()($30,000)(). 3. a. Aftertax cash flow (CF): CF = $50,000 = $30,000 (NI) + $20,000 (depreciation) b. Aftertax cash flow from revenues = $72,000 = [(1 – )$120,000] c. Aftertax cash expenses = $30,000 = [(1 – )$50,000] d. Cash inflow tax effect of depreciation = $8,000 = ( ? $20,000) 464 PROBLEMS 20–14 1. Year 0 ................................................................................................. $ (420,000) Year 1: Operating costs ( ? $35,000)..................................... $ (21,000) Savings ( ? $243,000) ................................................. 145,800 Depreciation shield [ ? ($420,000/7) ? ] ............ 12,000 ....................................................................................... Total $ 136,800 Years 2–7: Operating costs ................................................................... $ (21,000) Savings.................................................................................. 145,800 Depreciation shield ( ? $60,000) .............................. 24,000 ....................................................................................... Total $ 148,800 Year 8: Operating costs ( ? $35,000)..................................... $ (21,000) Savings ( ? $243,000) ................................................. 145,800 Depreciation shield ( ? $30,000) ............................. 12,000 ....................................................................................... Total $ 136,800 Years 9–10: Operating costs ( ? $35,000)..................................... $ (21,000) Savings ( ? $243,000) ................................................. 145,800 ....................................................................................... Total $ 124,800 2. Payback period: $136,800 year 148,800 134,400 ($134,400/$148,800) $ 420,000 years 3. Year Cash Flow Discount Factor Present Value .................... 0 $(420,000) $(420,000) .................... 1 136,800 117,922 465 ................ 2–7 148,800 472,589 .................... 8 136,800 41,724 .................... 9 124,800 32,822 .................. 10 124,800 28,330 NPV ................................................................................................. $ 273,387 The NPV is positive and signals the acceptance of the project. 466 20–14 Concluded 4. Most of the factors mentioned can be quantified. Furthermore, they should be included in the analysis. All direct and indirect costs as well as costs of intangible factors should be included。 the contemporary technology system is now preferred. To remain petitive, managers must make good decisions, and this exercise emphasizes how indirect benefits can affect decisions. Intangibles such as customer satisfaction and ontime deliveries are important and can be translated into quantitative effects. 20–16 1. Proposal A: Year Cash Flow Discount Factor Present Value .................... 0 $(100,000) $(250,000) .................... 1 150,000 136,350 .................... 2 125,000 103,250 .................... 3 75,000 56,325 .................... 4 37,500 25,613 .................... 5 25,000 15,525 .................... 6 12,500 7,050 NPV ................................................................................................. $ 94,113 Proposal B: Year Cash Flow Discount Factor Present Value 471 .................... 0 $(312,500) $(312,500) .................... 1 (37,500) (34,088) ...........