MGAB03H3 Lecture Notes - Lecture 2: Icq, Snowplow, Net Present Value
Document Summary
12. 26 npv, irr, arr and payback methods - amaro clinic: the net present value is (,000 x 5. 2161) - 20,000 = ,080, the factor for the internal rate of return must be. From the pvfa tables for 10 year, it would be just over 20% (pvfa = 4. 192) Using excel"s irr function, the rate is 21. 4: assuming straight-line amortization, the earnings will be. The accounting rate of return is ,000/20,000 = 15: the payback period is ,000/,000 = 4 years. 12. 27 npv, arr and payback methods moosehead community centre. A sample spreadsheet showing the calculations for this problem is available on the instructor"s web site for the textbook (available at www. wiley. com/canada/eldenburg). C: based on the above analysis this snow plough would not be recommended. The net present value is negative indicating that the cost savings are not sufficient enough to cover the cost of the snow plough.
