Hello, I can't figure out the answer to a question. I have attached a screen shot of the question. I am able to calculate part A correctly as shown, but I can not get part B. The answer I got in part...


Hello,


I can't figure out the answer to a question.


I have attached a screen shot of the question. I am able to calculate part A correctly as shown, but I can not get part B. The answer I got in part b about factory worth was $599,348.18.


I have followed the formulas shown exactly. On this problem I did =PV(0.09,4,-185000,0) in excel.


I have done this problem multiple times with different numbers and always get part A, but not part B. Getting part A correct tells me all my input numbers are correct, so what am I doing wrong for part B?


I have also attached screen shot of my excel sheet and you can see formula I entered in the bar above


Paste<br>BI U<br>60 .00<br>Conditional Format as<br>Cell<br>-<br>| Merge & Center<br>国Fom<br>Formatting Table v Styles v<br>Clipboard<br>Font<br>Alignment<br>Number<br>Styles<br>Ce<br>К17<br>=PV(0.09,4,-185000,0)<br>E<br>F<br>H<br>K<br>L.<br>M<br>N<br>P<br>PV Of Cash Flows<br>-$950,000.00<br>$169,724.7706<br>Year<br>Cash Flows<br>FVIF @ 11%<br>-$950,000.00<br>1.0000<br>3<br>1.<br>$185,000.00<br>1.0900<br>$155,710.7988<br>$142,853.9438<br>4<br>$185,000.00<br>1.1881<br>5<br>3<br>$185,000.00<br>1.2950<br>4<br>$185,000.00<br>1.4116<br>$131,058.6640<br>7<br>5<br>$185,000.00<br>1.5386<br>$120,237.3065<br>8<br>$185,000.00<br>1.6771<br>$110,309.4555<br>9<br>7<br>$185,000.00<br>1.8280<br>$101,201.3353<br>10<br>8<br>$185,000.00<br>1.9926<br>$92,845.2617<br>11<br>9<br>$185,000.00<br>2.1719<br>$85,179.1392<br>12<br>10<br>$185,000.00<br>2.3674<br>$78,145.9993<br>13<br>11<br>$185,000.00<br>2.5804<br>$71,693.5773<br>14<br>12<br>$185,000.00<br>2.8127<br>$65,773.9241<br>15<br>13<br>$185,000.00<br>3.0658<br>$60,343.0497<br>16<br>NPV Of Factory<br>$435,077.23<br>17<br>Worth End Of Four Years<br>$599,348.18<br>18<br>19<br>20<br>21<br>22<br>22<br>Problem 7 Amoritization Table<br>Problem 14 NPV<br>Problem 14 NPV Try 2<br>Problem 12 NPV MCF A ... +<br>...<br>

Extracted text: Paste BI U 60 .00 Conditional Format as Cell - | Merge & Center 国Fom Formatting Table v Styles v Clipboard Font Alignment Number Styles Ce К17 =PV(0.09,4,-185000,0) E F H K L. M N P PV Of Cash Flows -$950,000.00 $169,724.7706 Year Cash Flows FVIF @ 11% -$950,000.00 1.0000 3 1. $185,000.00 1.0900 $155,710.7988 $142,853.9438 4 $185,000.00 1.1881 5 3 $185,000.00 1.2950 4 $185,000.00 1.4116 $131,058.6640 7 5 $185,000.00 1.5386 $120,237.3065 8 $185,000.00 1.6771 $110,309.4555 9 7 $185,000.00 1.8280 $101,201.3353 10 8 $185,000.00 1.9926 $92,845.2617 11 9 $185,000.00 2.1719 $85,179.1392 12 10 $185,000.00 2.3674 $78,145.9993 13 11 $185,000.00 2.5804 $71,693.5773 14 12 $185,000.00 2.8127 $65,773.9241 15 13 $185,000.00 3.0658 $60,343.0497 16 NPV Of Factory $435,077.23 17 Worth End Of Four Years $599,348.18 18 19 20 21 22 22 Problem 7 Amoritization Table Problem 14 NPV Problem 14 NPV Try 2 Problem 12 NPV MCF A ... + ...
Problem 2-14 Present values<br>A factory costs $950,000. You reckon that it will produce an inflow after operating costs of $185,000 a year for 13 years.<br>3.33<br>points<br>a. If the opportunity cost of capital is 9%, what is the net present value of the factory? (Do not round intermediate calculations. Round<br>your answer to 2 decimal places.)<br>O Answer is complete and correct.<br>Net present value<br>$ 435,077.23 O<br>b. What will the factory be worth at the end of four years? (Do not round intermediate calculations. Round your answer to 2 decimal<br>places.)<br>3.<br>

Extracted text: Problem 2-14 Present values A factory costs $950,000. You reckon that it will produce an inflow after operating costs of $185,000 a year for 13 years. 3.33 points a. If the opportunity cost of capital is 9%, what is the net present value of the factory? (Do not round intermediate calculations. Round your answer to 2 decimal places.) O Answer is complete and correct. Net present value $ 435,077.23 O b. What will the factory be worth at the end of four years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 3.
Jun 08, 2022
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