Staley metal buildings company

Staley metal buildings company Cash Flow Analysis of facilities Alternativee (Before Taxes)

Year Alternative

Expand Lansing Plant (Plan A)

0 1986
1 1987
2 1988
3 1989
4 1990
5 1991
6 1992
7 1993
8 1994
9 1995
10 1996
11 1997
12 1998
13 1999
14 2000
15 2001
16 2002
17 2003
18 2004
19 2005
20 2006
21 2007
22 2008
23 2009
24 2010
25 2011
26 2012
27 2013
28 2014
29 2015
30 2016
31 2017
32 2018
33 2019
34 2020
35 2021
36 2022
37 2023
38 2024
39 2025
40 2026

a. NPV meth $2,768.33

b. IRR metho 15%
c. Payback m 8.00 Años

Relocate Lansing Plant (Plan B)

0 1986
1 1987
2 1988
3 1989
4 1990
5 1991
6 1992
7 1993
8 1994
9 1995
10 1996
11 1997
12 1998
13 1999
14 2000
15 2001
16 2002
17 2003
18 2004
19 2005
20 2006
21 2007
22 2008
23 2009
24 2010
25 2011
26 2012
27 2013
28 2014
29 2015
30 2016
31 2017
32 2018
33 2019
34 2020
35 2021
36 2022
37 2023
38 2024
39 2025
40 2026

a. NPV meth $9,305.06

b. IRR metho 20%
c. Payback m 5.54 Años

Lansing and Huntsville (Plan C)

0 1986
1 1987
2 1988
3 1989
4 1990
5 1991
6 1992
7 1993
8 1994
9 1995
10 1996
11 1997
12 1998
13 1999
14 2000
15 2001
16 2002
17 2003
18 2004
19 2005
20 2006
21 2007
22 2008
23 2009
24 2010
25 2011
26 2012
27 2013
28 2014
29 2015
30 2016
31 2017
32 2018
33 2019
34 2020
35 2021
36 2022
37 2023
38 2024
39 2025
40 2026

a. NPV meth $11,049.58

b. IRR metho 17%
c. Payback m 6.86 Años

Lansing, Huntsville, and Bethesds

(Plan D)
0 1986
1 1987
2 1988
3 1989
4 1990
5 1991
6 1992
7 1993
8 1994
9 1995
10 1996
11 1997
12 1998
13 1999
14 2000
15 2001
16 2002
17 2003
18 2004
19 2005
20 2006
21 2007
22 2008
23 2009
24 2010
25 2011
26 2012
27 2013
28 2014
29 2015
30 2016
31 2017
32 2018
33 2019
34 2020
35 2021
36 2022
 37 2023
38 2024
39 2025
40 2026

a. NPV meth $5,486.40

b. IRR metho 14%
c. Payback m 10.00 Años

Preguntas

1. Assuming that the plans are mutually exclusive, evaluate the four plans using the:

Plan A Plan B Plan C

a. NPV method $ 2,768.33 $ 9,305.06 $11,049.58
b. IRR method 14.7% 20.2% 17.3%
c. Payback method 8 5.5 6.9

La VPN de los planes A, B y D son más baja a diferencia del Plan C, pero,
Si estos fueran proyectos mutuamente exclusivos, deberíamos elegir e

Podemos observar que en el periodo de recuperación de la inversión en el plan B tiene un menor

2. Explain why the NPV and IRR methods can give conflicting signals for accept reject decisions

Years Plan A Plan B Plan C

0 -$ 9,825.00 -$ 10,353.00 -$15,699.00
1 $ 190.00 $ 604.00 -$ 593.00
2 $ 328.00 $ 883.00 -$ 446.00
3 $ 672.00 $ 1,249.00 $ 541.00
4 $ 2,000.00 $ 3,000.00 $ 1,914.00
5 $ 2,000.00 $ 3,000.00 $ 5,000.00
6 $ 2,000.00 $ 3,000.00 $ 5,000.00
7 $ 2,000.00 $ 3,000.00 $ 5,000.00
8 $ 2,000.00 $ 3,000.00 $ 5,000.00
9 $ 2,000.00 $ 3,000.00 $ 5,000.00
10 $ 2,000.00 $ 3,000.00 $ 5,000.00
11 $ 2,000.00 $ 3,000.00 $ 5,000.00
12 $ 2,000.00 $ 3,000.00 $ 5,000.00
13 $ 2,000.00 $ 3,000.00 $ 5,000.00
14 $ 2,000.00 $ 3,000.00 $ 5,000.00
15 $ 2,000.00 $ 3,000.00 $ 5,000.00
16 $ 2,000.00 $ 3,000.00 $ 5,000.00
17 $ 2,000.00 $ 3,000.00 $ 5,000.00
18 $ 2,000.00 $ 3,000.00 $ 5,000.00
 19 $ 2,000.00 $ 3,000.00 $ 5,000.00
20 $ 2,000.00 $ 3,000.00 $ 5,000.00
21 $ 2,000.00 $ 3,000.00 $ 5,000.00
22 $ 2,000.00 $ 3,000.00 $ 5,000.00
23 $ 2,000.00 $ 3,000.00 $ 5,000.00
24 $ 2,000.00 $ 3,000.00 $ 5,000.00
25 $ 2,000.00 $ 3,000.00 $ 5,000.00
26 $ 2,000.00 $ 3,000.00 $ 5,000.00
27 $ 2,000.00 $ 3,000.00 $ 5,000.00
28 $ 2,000.00 $ 3,000.00 $ 5,000.00
29 $ 2,000.00 $ 3,000.00 $ 5,000.00
30 $ 2,000.00 $ 3,000.00 $ 5,000.00
31 $ 2,000.00 $ 3,000.00 $ 5,000.00
32 $ 2,000.00 $ 3,000.00 $ 5,000.00
33 $ 2,000.00 $ 3,000.00 $ 5,000.00
34 $ 2,000.00 $ 3,000.00 $ 5,000.00
35 $ 2,000.00 $ 3,000.00 $ 5,000.00
36 $ 2,000.00 $ 3,000.00 $ 5,000.00
37 $ 2,000.00 $ 3,000.00 $ 5,000.00
38 $ 2,000.00 $ 3,000.00 $ 5,000.00
39 $ 2,000.00 $ 3,000.00 $ 5,000.00
40 $ 2,000.00 $ 3,000.00 $ 5,000.00

VPN $ 2,768.33 $ 9,305.06 $11,049.58

TIR 14.7% 20.2% 17.3%
PRI 8 5.5 6.9

TASA DE RENDIMIENTO MINIMA 12%

ACEPTABLE:

Se deberá aceptar el proyecto si la TIR se encuentra entre su tasa máxima y la TRMA

Generalmente se mide la riqueza de forma cuantitativa en unidades monetarias, por lo que d

utilizarse el método del VPN para lograr la maximización de la riqueza de los accionistas, el e
del método de la TIR podría conducir a decisiones de inversión que incrementen la riqueza, p
que la maximicen.

Cuando los proyectos son independientes, el VPN y la TIR estos métodos conducen a acep
rechazar la decisión. Sin embargo, al evaluar ambos métodos excluyendo los proyectos, en e
los que difieren en escala y/o tiempo, el método que debe usarse es el NPV.
Hay conflicto en los planes ya que varían su TIR Y SU VPN, algunos planes tienen su TIR más a
su VPN o viceversa.
ternativee (Before Taxes)

Additional Investiment Operating Cash Flow

Year
requirements Before Taxes

$ 10,308.00 $ 483.00 0
450.00 640.00 1
480.00 808.00 2
210.00 882.00 3
0.00 2,000.00 4
0.00 2,000.00 5
0.00 2,000.00 6
0.00 2,000.00 7
0.00 2,000.00 8
0.00 2,000.00 9
0.00 2,000.00 10
0.00 2,000.00 11
0.00 2,000.00 12
0.00 2,000.00 13
0.00 2,000.00 14
0.00 2,000.00 15
0.00 2,000.00 16
0.00 2,000.00 17
0.00 2,000.00 18
0.00 2,000.00 19
0.00 2,000.00 20
0.00 2,000.00 21
0.00 2,000.00 22
0.00 2,000.00 23
0.00 2,000.00 24
0.00 2,000.00 25
0.00 2,000.00 26
0.00 2,000.00 27
0.00 2,000.00 28
0.00 2,000.00 29
0.00 2,000.00 30
0.00 2,000.00 31
0.00 2,000.00 32
0.00 2,000.00 33
0.00 2,000.00 34
0.00 2,000.00 35
0.00 2,000.00 36
 0.00 2,000.00 37
0.00 2,000.00 38
0.00 2,000.00 39
0.00 2,000.00 40

$ 10,188.00 -$ 165.00 0
450.00 1,054.00 1
480.00 1,363.00 2
210.00 1,459.00 3
- 3,000.00 4
- 3,000.00 5
- 3,000.00 6
- 3,000.00 7
- 3,000.00 8
- 3,000.00 9
- 3,000.00 10
- 3,000.00 11
- 3,000.00 12
- 3,000.00 13
- 3,000.00 14
- 3,000.00 15
- 3,000.00 16
- 3,000.00 17
- 3,000.00 18
- 3,000.00 19
- 3,000.00 20
- 3,000.00 21
- 3,000.00 22
- 3,000.00 23
- 3,000.00 24
- 3,000.00 25
- 3,000.00 26
- 3,000.00 27
- 3,000.00 28
- 3,000.00 29
- 3,000.00 30
- 3,000.00 31
- 3,000.00 32
- 3,000.00 33
- 3,000.00 34
- 3,000.00 35
- 3,000.00 36
 - 3,000.00 37
- 3,000.00 38
- 3,000.00 39
- 3,000.00 40

$ 16,204.00 $ 505.00 0
1,230.00 637.00 1
1,860.00 1,414.00 2
1,800.00 2,341.00 3
960.00 2,874.00 4
- 5,000.00 5
- 5,000.00 6
- 5,000.00 7
- 5,000.00 8
- 5,000.00 9
- 5,000.00 10
- 5,000.00 11
- 5,000.00 12
- 5,000.00 13
- 5,000.00 14
- 5,000.00 15
- 5,000.00 16
- 5,000.00 17
- 5,000.00 18
- 5,000.00 19
- 5,000.00 20
- 5,000.00 21
- 5,000.00 22
- 5,000.00 23
- 5,000.00 24
- 5,000.00 25
- 5,000.00 26
- 5,000.00 27
- 5,000.00 28
- 5,000.00 29
- 5,000.00 30
- 5,000.00 31
- 5,000.00 32
- 5,000.00 33
- 5,000.00 34
- 5,000.00 35
- 5,000.00 36
 - 5,000.00 37
- 5,000.00 38
- 5,000.00 39
- 5,000.00 40

$ 16,204.00 $ 505.00 0
1,230.00 637.00 1
7,836.00 1,343.00 2
2,430.00 2,100.00 3
1,770.00 2,953.00 4
1,230.00 3,564.00 5
1,380.00 4,154.00 6
1,200.00 4,658.00 7
- 6,000.00 8
- 6,000.00 9
- 6,000.00 10
- 6,000.00 11
- 6,000.00 12
- 6,000.00 13
- 6,000.00 14
- 6,000.00 15
- 6,000.00 16
- 6,000.00 17
- 6,000.00 18
- 6,000.00 19
- 6,000.00 20
- 6,000.00 21
- 6,000.00 22
- 6,000.00 23
- 6,000.00 24
- 6,000.00 25
- 6,000.00 26
- 6,000.00 27
- 6,000.00 28
- 6,000.00 29
- 6,000.00 30
- 6,000.00 31
- 6,000.00 32
- 6,000.00 33
- 6,000.00 34
- 6,000.00 35
- 6,000.00 36
 - 6,000.00 37
- 6,000.00 38
- 6,000.00 39
- 6,000.00 40

our plans using the:

Plan D
$ 5,486.40
14.0%
10 Años

aja a diferencia del Plan C, pero, en el plan B, la TIR es más alta que el resto de los planes.
nte exclusivos, deberíamos elegir el que tenga un VPN más alto, es decir, el proyecto C.

rsión en el plan B tiene un menor número de años para recuperar su inversión a comparación de los otros planes.

als for accept reject decisions. Is there such a conflict in this case? Why ? Resolve this conflict by making an incremental cash-flow a

Plan D t Plan A (VPN) Plan B (VPN) Plan C (VPN) Plan D (VPN)

-$15,699.00 0% $65,365.00 $103,383.00 $165,717.00 $184,634.00
-$ 593.00 1% $51,124.29 $82,003.99 $130,304.67 $142,863.60
-$ 6,493.00 2% $40,252.97 $65,679.62 $103,307.74 $111,149.24
-$ 330.00 3% $31,855.93 $53,067.21 $82,488.90 $86,809.19
$ 1,183.00 4% $25,293.72 $43,207.56 $66,249.89 $67,928.35
$ 2,334.00 5% $20,105.63 $35,409.59 $53,439.37 $53,127.65
$ 2,774.00 6% $15,956.96 $29,171.22 $43,220.89 $41,405.71
$ 3,458.00 7% $12,602.40 $24,124.47 $34,981.53 $32,029.21
$ 6,000.00 8% $9,860.62 $19,997.33 $28,268.30 $24,456.54
$ 6,000.00 9% $7,596.42 $16,586.99 $22,743.45 $18,284.26
$ 6,000.00 10% $5,708.08 $13,740.83 $18,152.99 $13,209.24
$ 6,000.00 11% $4,118.42 $11,343.07 $14,304.19 $9,001.80
$ 6,000.00 12% $2,768.33 $9,305.06 $11,049.58 $5,486.40
$ 6,000.00 13% $1,612.19 $7,558.32 $8,275.29 $2,527.76
$ 6,000.00 14% $614.45 $6,049.53 $5,892.69 $20.73
$ 6,000.00 15% -$252.81 $4,736.79 $3,832.16 -$2,117.06
$ 6,000.00 16% -$1,011.71 $3,586.91 $2,038.61 -$3,950.67
$ 6,000.00 17% -$1,679.92 $2,573.37 $468.04 -$5,531.90
$ 6,000.00 18% -$2,271.66 $1,674.84 -$914.91 -$6,902.30
 $ 6,000.00 19% -$2,798.47 $873.99 -$2,138.94 -$8,095.41
$ 6,000.00 20% -$3,269.77 $156.68 -$3,227.46 -$9,138.57
$ 6,000.00 21% -$3,693.33 -$488.76 -$4,199.74 -$10,054.15
$ 6,000.00 22% -$4,075.58 -$1,071.98 -$5,071.72 -$10,860.60
$ 6,000.00 23% -$4,421.90 -$1,601.05 -$5,856.70 -$11,573.23
$ 6,000.00 24% -$4,736.80 -$2,082.75 -$6,565.84 -$12,204.85
$ 6,000.00 25% -$5,024.08 -$2,522.79 -$7,208.53 -$12,766.16
$ 6,000.00 26% -$5,286.98 -$2,926.04 -$7,792.77 -$13,266.24
$ 6,000.00 27% -$5,528.27 -$3,296.65 -$8,325.35 -$13,712.77
$ 6,000.00 28% -$5,750.32 -$3,638.20 -$8,812.12 -$14,112.29
$ 6,000.00 29% -$5,955.18 -$3,953.76 -$9,258.11 -$14,470.42
$ 6,000.00 30% -$6,144.64 -$4,246.01 -$9,667.67 -$14,791.99
$ 6,000.00 31% -$6,320.22 -$4,517.28 -$10,044.58 -$15,081.15
$ 6,000.00 32% -$6,483.30 -$4,769.60 -$10,392.14 -$15,341.52
$ 6,000.00 33% -$6,635.06 -$5,004.76 -$10,713.24 -$15,576.25
$ 6,000.00 34% -$6,776.54 -$5,224.33 -$11,010.44 -$15,788.07
$ 6,000.00 35% -$6,908.67 -$5,429.71 -$11,285.96 -$15,979.39
$ 6,000.00 36% -$7,032.27 -$5,622.14 -$11,541.81 -$16,152.32
$ 6,000.00 37% -$7,148.07 -$5,802.71 -$11,779.73 -$16,308.72
$ 6,000.00 38% -$7,256.73 -$5,972.42 -$12,001.31 -$16,450.23
$ 6,000.00 39% -$7,358.83 -$6,132.14 -$12,207.95 -$16,578.32
$ 6,000.00 40% -$7,454.89 -$6,282.66 -$12,400.90 -$16,694.27
41% -$7,545.39 -$6,424.70 -$12,581.29 -$16,799.24
$ 5,486.40 42% -$7,630.75 -$6,558.90 -$12,750.14 -$16,894.24
14.0% 43% -$7,711.36 -$6,685.84 -$12,908.35 -$16,980.22
10 44% -$7,787.56 -$6,806.05 -$13,056.76 -$17,057.97
45% -$7,859.68 -$6,920.00 -$13,196.12 -$17,128.25
46% -$7,928.00 -$7,028.15 -$13,327.11 -$17,191.72
47% -$7,992.79 -$7,130.87 -$13,450.33 -$17,248.97
48% -$8,054.29 -$7,228.54 -$13,566.37 -$17,300.55
49% -$8,112.71 -$7,321.50 -$13,675.73 -$17,346.95
50% -$8,168.26 -$7,410.04 -$13,778.88 -$17,388.60

$200,000.00

e su tasa máxima y la TRMA

$150,000.00
ades monetarias, por lo que debería
iqueza de los accionistas, el empleo
que incrementen la riqueza, pero no

os métodos conducen a aceptar o $100,000.00

cluyendo los proyectos, en especial
e debe usarse es el NPV.

$50,000.00
 $100,000.00

$50,000.00

os planes tienen su TIR más alta que

$0.00
0% 10% 20% 30% 40% 50%

($50,000.00)

Plan A (VPN) Plan B (VPN) Plan C (VPN) Plan D (VPN)

 Yearly Met Cash Flow c. Payback method

-$ 9,825.00
$ 190.00
$ 328.00 $ 518.00
$ 672.00 $ 1,190.00
$ 2,000.00 $ 3,190.00
$ 2,000.00 $ 5,190.00
$ 2,000.00 $ 7,190.00
$ 2,000.00 $ 9,190.00
$ 2,000.00
$ 2,000.00 Inversión inicial: 9,825.00
$ 2,000.00 Último flujo: 2,000.00
$ 2,000.00 Por recuperar: 635.00
$ 2,000.00 Payback method (Año): 1.00
$ 2,000.00 Payback method 8.00 Años
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00

c. Payback method

-$ 10,353.00
$ 604.00
$ 883.00 $ 1,487.00
$ 1,249.00 $ 2,736.00
$ 3,000.00 $ 5,736.00
$ 3,000.00 $ 8,736.00
$ 3,000.00
$ 3,000.00 Inversión inicial: $10,353.00
$ 3,000.00 Último flujo: $ 3,000.00
$ 3,000.00 Por recuperar: $ 1,617.00
$ 3,000.00 Payback method (Año): $ 0.54
$ 3,000.00 Payback method 5.54 Años
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00
$ 3,000.00

c. Payback method

-$ 15,699.00
-$ 593.00
-$ 446.00 -$ 1,039.00
$ 541.00 -$ 498.00
$ 1,914.00 $ 1,416.00
$ 5,000.00 $ 6,416.00
$ 5,000.00 $ 11,416.00
$ 5,000.00
$ 5,000.00 Inversión inicial: $15,699.00
$ 5,000.00 Último flujo: $ 5,000.00
$ 5,000.00 Por recuperar: $ 4,283.00
$ 5,000.00 Payback method (Año): $ 0.86
$ 5,000.00 Payback method 6.86
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00

c. Payback method

-$ 15,699.00
-$ 593.00
-$ 6,493.00 -$ 7,086.00
-$ 330.00 -$ 7,416.00
$ 1,183.00 -$ 6,233.00
$ 2,334.00 -$ 3,899.00
$ 2,774.00 -$ 1,125.00
$ 3,458.00 $ 2,333.00
$ 6,000.00 $ 8,333.00
$ 6,000.00 $ 14,333.00
$ 6,000.00
$ 6,000.00 Inversión inicial: $15,699.00
$ 6,000.00 Último flujo: $ 6,000.00
$ 6,000.00 Por recuperar: $ 1,366.00
$ 6,000.00 Payback method (Año): $ 1.00
$ 6,000.00 Payback method 10.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00
 $ 6,000.00
$ 6,000.00
$ 6,000.00
$ 6,000.00

making an incremental cash-flow analysis.

 40% 50% 60%

Plan C (VPN) Plan D (VPN)