{"text_format":"1","workbook":"xlsx","n_sheets":8,"sheets":["Problem 1","Problem 2","Problem 3","Problem 4","Scenario Summary","Problem 5a","Problem 5b","Problem 5c"],"not_rendered":{"charts":2,"images":0,"macros":1,"external_links":0,"defined_names":114,"comments":1,"pivot_tables":0},"unopened":[],"bounds":{"document_bytes":16777216,"sheet_cells":100000,"rows_first":2000,"rows_last":500,"rows_between":2000,"halvings":0,"cell_chars":16384,"cell_head_chars":4096},"cells_cut":0,"cells_raw":0,"read":"whole","date_system":"1900"}

{"sheet":"Problem 1","index":0,"n_rows":51,"n_cols":5,"rows_kept":51,"cut":false,"hidden":false,"merged":[]}
["Year","Project A","Project B"]
[0,-75000,{"$f":"B2","v":-75000}]
[1,5000,36000]
[2,15000,27000]
[3,28000,20000]
[4,35000,15000]
[5,40000,10000]
[]
["WACC",0.1]
[]
["Payback Period",{"$f":"[0]!FAME_Payback(B2:B7)","v":3.7714285714285714},{"$f":"[0]!FAME_Payback(C2:C7)","v":2.6}]
["Discounted Payback",{"$f":"[0]!FAME_Payback(B2:B7,$B$9)","v":4.5280688499614259},{"$f":"[0]!FAME_Payback(C2:C7,$B$9)","v":3.4814333497330732}]
["NPV",{"$f":"NPV($B$9,B3:B7)+B2","v":11721.287045718404},{"$f":"NPV($B$9,C3:C7)+C2","v":11522.033393148726}]
["Profitability Index",{"$f":"B13/-B2+1","v":1.1562838272762455},{"$f":"C13/-C2+1","v":1.1536271119086496}]
["IRR",{"$f":"IRR(B2:B7)","v":0.14564257661374103},{"$f":"IRR(C2:C7)","v":0.17395945527830792}]
["MIRR",{"$f":"MIRR(B2:B7,$B$9,$B$9)","v":0.13241490093808617},{"$f":"MIRR(C2:C7,$B$9,$B$9)","v":0.13189404735673871}]
["Crossover Rate",{"$f":"IRR(B2:B7-C2:C7)","v":0.10187130278699308}]
[]
["NPV Profile Data"]
["WACC","NPVA","NPVB"]
[0,{"$f":"NPV($A21,B$3:B$7)+B$2","v":48000},{"$f":"NPV($A21,C$3:C$7)+C$2","v":33000}]
[0.02,{"$f":"NPV($A22,B$3:B$7)+B$2","v":39268.340174325393},28007.110920122213]
[0.04,31363.164502158645,23399.663473321605]
[0.06,24189.872785166503,19138.540369204784,{"$f":"$B$17","v":0.10187130278699308},0]
[0.08,17666.387411947115,15189.406064169205,{"$f":"$B$17","v":0.10187130278699308},{"$f":"NPV(D25,B3:B7)+B2","v":11192.331155444583}]
[0.1,11721.287045718404,11522.033393148726]
[0.12,6292.2477892395691,8109.7365262613603,0,{"$f":"E$25","v":11192.331155444583}]
[0.14000000000000001,1324.7365753408521,4928.891765310429,{"$f":"B17","v":0.10187130278699308},{"$f":"E$25","v":11192.331155444583}]
[0.16,-3229.0877512517618,1958.5311871119629]
[0.18,-7411.3017034269142,-820.00307699710538]
[0.2,-11259.002057613165,-3423.3539094650187]
[0.22,-14804.972281070884,-5866.4018172156357]
[0.24,-18078.250032632823,-8162.4818353852024]
[0.26,-21104.611798842234,-10323.570305089022]
[0.28000000000000003,-23906.987905502319,-12360.446155071259]
[0.3,-26505.818854651188,-14282.830540839721]
[0.32,-28919.362072076292,-16099.50805911162]
[0.34,{"$f":"NPV($A38,B$3:B$7)+B$2","v":-31163.956626576539},-17818.432232887884]
[0.36,-33254.252232795261,-19446.817531624656]
[0.38,-35203.40782184666,-20991.21983455844]
[0.4,-37023.264116142076,-22457.606949485322]
[0.42,-38724.493943231493,-23851.420553129006]
[0.44,-40316.73344118867,-25177.630713739862]
[0.46,-41808.696823428996,-26440.78398454038]
[0.48,-43208.27696636926,-27645.045912219866]
[0.5,-44522.633744855964,-28794.238683127573]
[0.52,-45758.271756298927,-29891.874527230138]
[0.54,-46921.108835572362,-30941.185413107902]
[0.56000000000000005,-48016.53656132763,-31945.149493651916]
[0.57999999999999996,-49049.473784117014,-32906.514699537693]
[0.6,-50024.4140625,-33827.81982421875]

{"sheet":"Problem 2","index":1,"n_rows":33,"n_cols":8,"rows_kept":33,"cut":false,"hidden":false,"merged":[]}
["Ocean City Ride Analysis"]
["Cost of Equipment",1800000]
["Installation Charge",180000]
["Life in Years",6]
["MACRS Class",5]
["Riders per Ride",16]
["Rides per Day",150]
["Days per Season",120]
["Year 1 Ticket Price",4]
["Ticket Price Increase",0.04]
["Variable Cost per Rider",1.4]
["Annual Fixed Costs",275000]
["Salvage Value",450000]
["Removal Cost",75000]
["WACC",0.12]
["Tax Rate",0.35]
[]
["Ocean City Log Flume Operating Cash Flow Statement"]
[null,0,1,2,3,4,5,6]
["Ticket Price",null,{"$f":"$B$9*(1+$B$10)^(C19-1)","v":4},4.16,4.3264000000000005,4.4994560000000003,4.6794342400000009,4.8666116096000014]
["Revenue",null,{"$f":"$B$6*$B$7*$B$8*C20","v":1152000},{"$f":"$B$6*$B$7*$B$8*D20","v":1198080},1246003.2000000002,1295843.3280000002,1347677.0611200002,1401584.1435648005]
["Variable Cost",null,{"$f":"$B$11*$B$6*$B$7*$B$8","v":403200},403200,403200,403200,403200,403200]
["Fixed Cost",null,{"$f":"$B$12","v":275000},275000,275000,275000,275000,275000]
["Depreciation",null,{"$f":"IFERROR([0]!FAME_MACRS($B$2+$B$3,$B$5,C19,FALSE),0)","v":396000},{"$f":"IFERROR([0]!FAME_MACRS($B$2+$B$3,$B$5,D19,FALSE),0)","v":633600},{"$f":"IFERROR([0]!FAME_MACRS($B$2+$B$3,$B$5,E19,FALSE),0)","v":380160},{"$f":"IFERROR([0]!FAME_MACRS($B$2+$B$3,$B$5,F19,FALSE),0)","v":228096},{"$f":"IFERROR([0]!FAME_MACRS($B$2+$B$3,$B$5,G19,FALSE),0)","v":228096},{"$f":"IFERROR([0]!FAME_MACRS($B$2+$B$3,$B$5,H19,FALSE),0)","v":114048}]
["Pre-Tax Cash Flow",null,{"$f":"C21-SUM(C22:C24)","v":77800},-113720,187643.20000000019,389547.32800000021,441381.0611200002,609336.1435648005]
["Taxes",null,{"$f":"C25*$B$16","v":27230},-39802,65675.120000000068,136341.56480000008,154483.37139200006,213267.65024768017]
["Add: Depreciation",null,{"$f":"C24","v":396000},633600,380160,228096,228096,114048]
["Terminal Cash Flow",null,null,null,null,null,null,{"$f":"B13-(B13-(B2+B3-SUM(C24:H24)))*B16-B14*(1-B16)","v":243750}]
["After-Tax Cash Flows",{"$f":"-(B2+B3)","v":-1980000},{"$f":"C25-C26+C27+C28","v":446570},559682,502128.08000000013,481301.76320000016,514993.68972800014,753866.49331712036]
[]
["Net Present Value",{"$f":"NPV(B15,C29:H29)+B29","v":202332.57576396456}]
["IRR",{"$f":"IRR(B29:H29)","v":0.15332414703355646}]
["MIRR",{"$f":"MIRR(B29:H29,B15,B15)","v":0.13831025094891047}]

{"sheet":"Problem 3","index":2,"n_rows":60,"n_cols":7,"rows_kept":60,"cut":false,"hidden":false,"merged":[]}
["Auraria Pet Foods Company"]
[null,"IO","ATCF1","ATCF2","ATCF3","ATCF4","ATCF5"]
["New Machine",-90000,35000,{"$f":"C3*(1+$B$7)","v":37800},{"$f":"D3*(1+$B$7)","v":40824},{"$f":"E3*(1+$B$7)","v":44089.920000000006},{"$f":"F3*(1+$B$7)","v":47617.113600000012}]
["Old Machine",-70000,32000,{"$f":"C4*(1+$B$8)","v":33920},{"$f":"D4*(1+$B$8)","v":35955.200000000004},{"$f":"E4*(1+$B$8)","v":38112.51200000001},{"$f":"F4*(1+$B$8)","v":40399.262720000013}]
["Net Cash Flows",{"$f":"B3-B4","v":-20000},3000,3880,4868.7999999999956,5977.4079999999958,7217.8508799999981]
[]
["New Machine CF Growth",0.08]
["Old Machine CF Growth",0.06]
["WACC",0.15]
[]
[null,"Old Machine","New Machine","Difference"]
["Payback Period",{"$f":"[0]!FAME_Payback(B4:G4,0)","v":2.1134745664722177},{"$f":"[0]!FAME_Payback(B3:G3,0)","v":2.4213207916911621},{"$f":"[0]!FAME_Payback(B5:G5,0)","v":4.3150234431454653}]
["Disc. Payback Period",{"$f":"[0]!FAME_Payback(B4:G4,B9)","v":2.6990157887467965},{"$f":"[0]!FAME_Payback(B3:G3,B9)","v":3.1642515782919345},{"$f":"[0]!FAME_Payback(B5:G5,B9)","v":"Payback > Life"}]
["Net Present Value",{"$f":"NPV(B9,C4:G4)+B4","v":48992.133772858302},{"$f":"NPV(B9,C3:G3)+B3","v":44742.131847230659},{"$f":"NPV(B9,C5:G5)+B5","v":-4250.0019256276464},{"$f":"C14-B14","v":-4250.0019256276428}]
["Profitability Index",{"$f":"B14/-B4+1","v":1.6998876253265471},{"$f":"C14/-B3+1","v":1.4971347983025629},{"$f":"D14/-B5+1","v":0.78749990371861767}]
["Internal Rate of Return",{"$f":"IRR(B4:G4)","v":0.40567201971694233},{"$f":"IRR(B3:G3)","v":0.33324864787579922},{"$f":"IRR(B5:G5)","v":6.7941408824591765E-2}]
["Modified IRR",{"$f":"MIRR(B4:G4,B9,B9)","v":0.27873891752726454},{"$f":"MIRR(B3:G3,B9,B9)","v":0.24666573044380402},{"$f":"MIRR(B5:G5,B9,B9)","v":9.6346771970904799E-2}]
["Crossover Rate",null,null,{"$f":"IRR(B3:G3-B4:G4)","v":6.7941408824591765E-2}]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
[]
["WACC","NPVOld","NPVNew","NPVDiff"]
[0,{"$f":"NPV(A45,$C$4:$G$4)+$B$4","v":110386.97472000006},{"$f":"NPV(A45,$C$3:$G$3)+$B$3","v":115331.03360000002},{"$f":"NPV(A45,$C$5:$G$5)+$B$5","v":4944.0588799999896}]
[0.02,{"$f":"NPV(A46,$C$4:$G$4)+$B$4","v":99657.708907804015},{"$f":"NPV(A46,$C$3:$G$3)+$B$3","v":102975.83019510654},{"$f":"NPV(A46,$C$5:$G$5)+$B$5","v":3318.1212873025252}]
[0.04,89878.203501008626,91720.503163943271,1842.2996629346489]
[0.06,80943.39622641509,81442.974518139992,499.57829172490892]
[0.08,72761.85287144169,72037.037037037022,-724.81583440467875,null,{"$f":"D16","v":6.7941408824591765E-2},0]
[0.1,65253.763044004678,63410.016454415047,-1843.7465895896457,null,{"$f":"D16","v":6.7941408824591765E-2},{"$f":"NPV(F50,$C$3:$G$3)+$B$3","v":77609.268736929138}]
[0.12,58349.263072120229,55480.81569202937,-2868.4473800908963]
[0.14000000000000001,51987.027659898115,48178.272893504356,-3808.7547663937476,null,0,{"$f":"G50","v":77609.268736929138}]
[0.16,46113.083182224495,41439.77819087563,-4673.3049913488558,null,{"$f":"F50","v":6.7941408824591765E-2},{"$f":"G50","v":77609.268736929138}]
[0.18,40679.804436189705,35210.104587590758,-5469.6998485989407]
[0.2,35645.06378600825,29440.416666666672,-6204.6471193415673]
[0.22,30971.507333182148,24087.427491586917,-6884.0798415952377]
[0.24,26625.937318225057,19112.679415467122,-7513.2579027579322]
[0.26,22578.783649243356,14481.928825952156,-8096.8548232912108]
[0.28000000000000003,18803.650438785553,10164.618343114853,-8639.0320956707055]
[0.3,15276.925856399132,6133.422822407083,-9143.5030339920286]

{"sheet":"Problem 4","index":3,"n_rows":33,"n_cols":5,"rows_kept":33,"cut":false,"hidden":false,"merged":[]}
["Chicago Turkey Data"]
[null,"Old Situation","New Situation"]
["Turkeys per Year",500000,{"$f":"B3","v":500000}]
["Cost per Turkey",7,6]
["Shipping Cost per Turkey",1,1.5]
["Selling Price",12,{"$f":"B6","v":12}]
["Total Cost per Turkey",{"$f":"B4+B5","v":8},{"$f":"C4+C5","v":7.5}]
["Additional Gross Profit per Turkey",null,{"$f":"(C6-C7)-(B6-B7)","v":0.5}]
["Investment in Additional Turkeys",null,15000]
["Land Cost",null,150000]
["Buildings Cost",null,300000]
["Labor Expense",0,130000]
["Depreciation Salvage Value (Buildings)",null,100000]
["Annual Depreciation Expense",null,{"$f":"(C11-C13)/C17","v":40000}]
["Actual Salvage Value (Land)",null,200000]
["Actual Salvage Value (Buildings)",null,100000]
["Life of Project",null,5]
["Tax Rate",0.35]
["Weighted Average Cost of Capital",0.11]
[null,null,null,"Period","Cash Flow"]
["Initial Outlay",{"$f":"SUM(C9:C11)","v":465000},null,0,{"$f":"-B21","v":-465000}]
["Annual After-tax Cash Flow",{"$f":"(C8*C3-C12)*(1-B18)+(C14*B18)","v":92000},null,1,{"$f":"$B$22","v":92000}]
["Terminal Cash Flow",{"$f":"C16-(C16-C13)*B18+C15-(C15-C10)*B18+C9","v":297500},null,2,{"$f":"$B$22","v":92000}]
[null,null,null,3,{"$f":"$B$22","v":92000}]
[null,null,null,4,{"$f":"$B$22","v":92000}]
[null,null,null,5,{"$f":"B22+B23","v":389500}]
["Profitability Measures"]
["Payback Period",{"$f":"[0]!FAME_Payback(E21:E26)","v":4.2490372272143775}]
["Discounted Payback",{"$f":"[0]!FAME_Payback(E21:E26,B19)","v":4.7768789333276418}]
["NPV",{"$f":"NPV(B19,E22:E26)+E21","v":51574.295721171889}]
["Profitability Index",{"$f":"B30/B21+1","v":1.1109124639164987}]
["IRR",{"$f":"IRR(E21:E26)","v":0.14375941600486142}]
["MIRR",{"$f":"MIRR(E21:E26,B19,B19)","v":0.13359767540792733}]

{"sheet":"Scenario Summary","index":4,"n_rows":18,"n_cols":6,"rows_kept":18,"cut":false,"hidden":false,"merged":[]}
[]
[null,"Scenario Summary"]
[null,null,null,"Best Case","Expected Case","Worst Case"]
[null,null,null,"Created by Timothy R. Mayes, Ph.D. on 6/23/2000\nModified by Timothy R. Mayes, Ph.D. on 6/23/2000","Created by Timothy R. Mayes, Ph.D. on 6/23/2000\nModified by Timothy R. Mayes, Ph.D. on 5/19/2006","Created by Timothy R. Mayes, Ph.D. on 6/23/2000"]
[null,"Changing Cells:"]
[null,null,{"$f":"'Problem 4'!A12","v":"Labor Expense"},100000,130000,140000]
[null,null,{"$f":"'Problem 4'!A15","v":"Actual Salvage Value (Land)"},300000,200000,100000]
[null,null,{"$f":"'Problem 4'!A16","v":"Actual Salvage Value (Buildings)"},150000,100000,50000]
[null,"Result Cells:"]
[null,null,{"$f":"'Problem 4'!A28","v":"Payback Period"},4.0375123395853896,4.2490372272143802,4.4308231173379999]
[null,null,{"$f":"'Problem 4'!A29","v":"Discounted Payback"},4.3961544119534803,4.7768789332564197,"Payback > Life"]
[null,null,{"$f":"'Problem 4'!A30","v":"NPV"},181505.79205104601,51574.295721171802,-30310.539379259098]
[null,null,{"$f":"'Problem 4'!A31","v":"Profitability Index"},1.39033503666892,1.1109124639165,0.934816044345679]
[null,null,{"$f":"'Problem 4'!A32","v":"IRR"},0.22034784548990499,0.14375941600483599,8.8328555390968705E-2]
[null,null,{"$f":"'Problem 4'!A33","v":"MIRR"},0.18562370049855101,0.133597675407927,9.51363901332343E-2]
[null,"Notes:  Current Values column represents values of changing cells at"]
[null,"time Scenario Summary Report was created.  Changing cells for each"]
[null,"scenario are highlighted in gray."]

{"sheet":"Problem 5a","index":5,"n_rows":16,"n_cols":4,"rows_kept":16,"cut":false,"hidden":false,"merged":[]}
["Eaton Medical Devices"]
["Optimal Capital Budget"]
["Under Capital Rationing"]
["Project","Cost","NPV","Include"]
["A",628200,72658,1]
["B",352100,36418,1]
["C",1245600,212150,1]
["D",814300,70925,1]
["E",124500,11400,0]
["F",985000,56842,1]
["G",2356400,93600,0]
["H",226900,65350,1]
["I",1650000,48842,0]
["J",714650,39815,1]
["Total",{"$f":"SUM(B5:B14*D5:D14)","v":4966750},{"$f":"SUM(C5:C14*D5:D14)","v":554158},{"$f":"SUM(D5:D14)","v":7}]
["Constraint",5000000]

{"sheet":"Problem 5b","index":6,"n_rows":18,"n_cols":4,"rows_kept":18,"cut":false,"hidden":false,"merged":[]}
["Eaton Medical Devices"]
["Optimal Capital Budget"]
["Under Capital Rationing"]
["Project","Cost","NPV","Include"]
["A",628200,72658,1]
["B",352100,36418,0]
["C",1245600,212150,1]
["D",814300,70925,1]
["E",124500,11400,1]
["F",985000,56842,1]
["G",2356400,93600,0]
["H",226900,65350,1]
["I",1650000,48842,0]
["J",714650,39815,1]
["Total",{"$f":"SUM(B5:B14*D5:D14)","v":4739150},{"$f":"SUM(C5:C14*D5:D14)","v":529140},{"$f":"SUM(D5:D14)","v":7}]
["Constraint",5000000]
[]
["Sum of A and B",{"$f":"SUM(D5:D6)","v":1}]

{"sheet":"Problem 5c","index":7,"n_rows":16,"n_cols":4,"rows_kept":16,"cut":false,"hidden":false,"merged":[]}
["Eaton Medical Devices"]
["Optimal Capital Budget"]
["Under Capital Rationing"]
["Project","Cost","NPV","Include"]
["A",628200,72658,1]
["B",352100,36418,1]
["C",1245600,212150,1]
["D",814300,70925,1]
["E",124500,11400,0]
["F",985000,56842,0]
["G",2356400,93600,0]
["H",226900,65350,1]
["I",1650000,48842,1]
["J",714650,39815,0]
["Total",{"$f":"SUM(B5:B14*D5:D14)","v":4917100},{"$f":"SUM(C5:C14*D5:D14)","v":506343},{"$f":"SUM(D5:D14)","v":6}]
["Constraint",5000000]