Comments

a) 14.67 days GRADE Points

b) 3.60 times Exercise 1 0.70
c) 4.60% Exercise 2 0.80
d) 9.59% 8.75% Exercise 3 0.50
e) 3.59% Net income/Assets Exercise 4 0.60
f) 7.89% Interest expense/Average debt Exercise 5 0.60
g) 1.125 times Exercise 6 0.90
4.10

Operational income 41
Depreciation (cost) 15
Depreciation (SGA) 5
EBITDA 61
Out of
0.80
0.80
0.80
0.80
0.80
1.00
5.00
Balance sheet 2018

Accounts receivable 54
Inventory 70
PPE (gross) 240
-Depreciation 120
PPE net 120
Total assets 244 244

Accounts payable 43
Debt 180
Total liabilities 223

Shareholders equity (operational) 7 Plug

Retained earnings 14
Total equity 21

L+E 244
Check -
 3.56% 1.06183655 6.18% 1 al 5 5.20%
0 al 2 0.98437923
-0.0156208 6.18%
0.98437923 1.06183655

A) 4.66%

B) 4.74%

C) 4.77%
20.49%
 6.18% 6.18% 6.18% 4.6591%
1.06183655 1.06183655 1.06183655 1.25139126 105% 105% 105% 105%

1.0465915
0.0465915
 4.30%
104.30% 125% -
 0 -150
1 -35 1. ($ 31.55) ($ 35.97) Excel does not calculate NVP for year
2 60 2. No, negative NPV
3 45 3. 6.61%
4 45 4. $ 25.40 $ 20.98 Excel does not calculate NVP for year
5 80

14% ($ 31.55) ($ 35.97)

6.61%

0 -150 -150
1 -35 -35
2 60 60
3 45 45
4 45 45
5 205 125 80
125

14% $ 25.40 $ 20.98

19%
xcel does not calculate NVP for year 0, you have to calculate it from year 1 and then add year 0

xcel does not calculate NVP for year 0, you have to calculate it from year 1 and then add year 0
 Growth 3%
0 - Opportunity cost 12%
1 -
2 9.00 Minimum payment today COP MM $ 75.10
3 9.27
4 9.55 $ 84.112
5 9.83
6 10.13
7 10.43
8 10.75
9 11.07
10 11.40
11 11.74
12 12.10
13 12.46
14 12.83
15 13.22
16 13.61
17 14.02
18 14.44
19 14.88
20 15.32
21 15.78
22 16.26
23 16.74
24 17.24
25 17.76
26 18.30
27 18.84
28 19.41
29 19.99
30 20.59
31 21.21
32 21.85
33 22.50
34 23.18
35 23.87
 0 1 2 3 4 5
Machine purchase 360 -60
Salaries 105 105 105 105 105
NWK recovery 80 -80
Depreciation 72 72 72 72 72

Gross profit on sale 60

Gross profit on savings 33 33 33 33 33

Total gross profit/loss 33 33 33 33 93

Tax rate 34%

Tax expense/shield 11.22 11.22 11.22 11.22 31.62

Cash flow -280 93.78 93.78 93.78 93.78 53.38

Discount rate 12%

NPV $ 31.37 $ 35.13

Yes, since the NPV for the marginal cash flow (decision) is positive, it is worthwhile for
the company to buy the computer.
 35.7
24.48 11.22