Formula Sheet 2

.pdf
School
University of Texas, Dallas **We aren't endorsed by this school
Course
FIN 6301
Subject
Finance
Date
Oct 20, 2023
Pages
1
Uploaded by AgentBat3269 on coursehero.com
i FIN 6301: Financial Management Formula Sheet - Mini Exam #2 Payback Period PP = Number of years prior to the complete payback + ୙୬୮ୟ୧ୢ ୟ୫୭୳୬୲ ୟ୲ ୲୦ୣ ୠୣ୥୧୬୬୧୬୥ ୭୤ ୲୦ୣ ୷ୣୟ୰ େୟୱ୦ ୤୪୭୵ ୧୬ ୲୦ୣ ୷ୣୟ୰ ୲୭ ୡ୭୫୮୪ୣ୲ୣ ୮ୟ୷ୠୟୡ୩ Net Present Value NPV = FCF 1 1 + r 1 + FCF 2 1 + r 2 + ... + FCF n 1 + r n - Initial investment cost Profitability Index PI = PV of all the future FCFs Initial Investment Cost Internal Rate of Return Initial Investment cost = FCF 1 1 + IRR 1 + FCF 2 1 + IRR 2 + ... + FCF n 1 + IRR n MACRS Depreciation Rate Class Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 3-Year 0.3333 0.4445 0.1481 0.0741 5-Year 0.2000 0.3200 0.1920 0.1152 0.1152 0.0576 Break-Even Points Accounting break-even point = ሺ୊୧୶ୣୢ ୡ୭ୱ୲ ୈୣ୮୰ୣୡ୧ୟ୲୧୭୬ሻ ሺଵ ି ሺ୔୰୧ୡୣ ୮ୣ୰ ୳୬୧୲ - ୚ୟ୰୧ୟୠ୪ୣ ୡ୭ୱ୲ ୮ୣ୰ ୳୬୧୲ሻ ሺଵ ି r = Corporate tax rate Financial break-even point = ୊୧୶ୣୢ ୡ୭ୱ୲ ሺଵ ି ୅୓େ ି ୈୣ୮୰ୣୡ୧ୟ୲୧୭୬ ሺ୔୰୧ୡୣ ୮ୣ୰ ୳୬୧୲ - ୚ୟ୰୧ୟୠ୪ୣ ୡ୭ୱ୲ ୮ୣ୰ ୳୬୧୲ሻ ሺଵ ି AOC = Annual Opportunity Cost BAII Functions To adjust the decimal places: hit 2ND , FORMAT , enter the number you desire (e.g., 4), then ENTER To raise a number to the power (exponentiation): Enter the base, hit y x , enter the exponent, and hit To clear the CF memory: hit CF , 2ND , then CLR WORK To switch to the [Beginning] payment mode: hit 2ND , PMT , 2ND , then ENTER
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