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Original Cost $25,000 Depreciation Expenses 4000

Salvage value $5,000


Useful Life 5

Book value Depreciation Acummulated Book value


Period Start Expenses Depreciation End
1 $25,000 $4,000 $4,000 $21,000
2 $21,000 $4,000 $8,000 $17,000
3 $17,000 $4,000 $12,000 $13,000
4 $13,000 $4,000 $16,000 $9,000
5 $9,000 $4,000 $20,000 $5,000
Original Cost $25,000
Salvage value $5,000
Useful Life 5

Acummulate
Book value Depreciatio Depreciation d Book value
Period Start n Percent Expenses Depreciation End
1 $25,000 40.00% $10,000.00 $10,000.00 $15,000.00
2 $15,000.00 40.00% $6,000.00 $16,000.00 $9,000.00
3 $9,000.00 40.00% $3,600.00 $19,600.00 $5,400.00
4 $5,400.00 7.41% $400.00 $20,000.00 $5,000.00
Use Variable Discount Rate
Year(n) FV PV K(Discount Rate) K% 1+K
1 200 (1+K) 1
1.12 178.57 12 0.12 1.12
2 300 (1+K) 2
1.25 239.16
3 300 (1+K)3 1.40 213.53
4 400 (1+K) 4
1.57 254.21 Cash Inflow Cash Outflow NPV
5 500 (1+K) 5
1.76 283.71 1169.18 1000.00 169.18
Total 1169.1843

Accept the project since the NPV is positive


IRR PI
17.70 1.17
Task Start Date Days to Complete
Task 1 22-May 13
Task 2 31-May 9
Task 3 5-Jun 9
Task 4 15-Jun 14
Task 5 21-Jun 9
Task 6 1-Jul 5 22-May 11-Jun 1-Jul 21-Jul 1
Task 7 8-Jul 7
Task 8 15-Jul 12 Task 1

Task 2

Task 3

Task 4

Task 5

Task 6
39920.00
39955.00 Task 7

Task 8
Jun 1-Jul 21-Jul 10-Aug

Days to Complete
Start Date
Task Start Date Days to Complete
Task 1 22-May 13
Task 2 31-May 9
Task 3 5-Jun 9
Task 4 15-Jun 14
Task 5 21-Jun 9
Task 6 1-Jul 5

22-May

25-May

28-May

31-May
Task 7 8-Jul 7

12-Jun
9-Jun
3-Jun

6-Jun
Task 8 15-Jul 12

39955.00 Task 1

Task 2

Task 3

Task 4

Task 5

Task 6

Task 7

Task 8
3-Jun

6-Jun

9-Jun

12-Jun

15-Jun

18-Jun

21-Jun

24-Jun

27-Jun
Gantt Chart

30-Jun

3-Jul

6-Jul

9-Jul

12-Jul

15-Jul

18-Jul

21-Jul

24-Jul

27-Jul
D
St
18-Jul

27-Jul
21-Jul

24-Jul

Days to Complete
Start Date

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