Aufgabe Vorschlag C - Aufgabe 1 · Abitur Hessen Wirtschaftslehre LK · bilingual Englisch 2022

1.1 Calculate the net present value of production island A

Lösung: $104,071.95$ $

1.1 Calculate the net present value of production island B

Lösung: $496,403.50$ $

1.1 Assess your results briefly.

Lösung: Both net present values are positive (USD 104,071.95 for A and USD 496,403.50 for B), which means that both investment objects exceed the required minimum return of 5%. Production island B yields a significantly higher net present value than production island A and is therefore to be preferred.

1.2 Draw a graph in a coordinate system and estimate the internal rate of return of the digital production island B on the basis of the given results.

Lösung: The graph plots the net present values on the vertical axis (EÜ in USD from -600,000 to +300,000) against interest rates on the horizontal axis (Zinsen in % around 6% to 9%). A straight line connects $(6\%, 216,887.60)$ and $(9\%, -525,053.25)$, crossing the horizontal zero axis between 6.5% and 7.0%.

1.2 Estimate the internal rate of return of the digital production island B on the basis of the graph

Lösung: 6.5 % / 6.6 % / 6.7 % / 6.8 % / 6.9 % / 7.0 %

1.3 Calculate the internal rate of return of production island B

Lösung: 6.88 %

1.3 Assess your results briefly.

Lösung: The investment yields an internal return of 6.88% over the 8-year period. Since this exceeds the required minimum interest rate of 5%, and both the NPV and IRR methods give positive/favourable results, a purchase recommendation can be made on purely calculation-based grounds.

1.4 Explain and assess the effects of a low market interest rate on the level of the discounting rate. Also, assess the impact of the low market interest rate and the resulting development of the present values considering the profitability of the company.

Lösung: The calculation/discount rate represents the investor's minimum return requirement, usually based on a base rate plus a risk premium. A lower market interest rate leads to a lower discount rate, resulting in less discounting of future cash surpluses and consequently higher net present values, making investments appear more attractive. Furthermore, low borrowing interest rates (if below the total return on capital) leverage return on equity (leverage effect). Companies that take on debt benefit strongly from low interest policies, enhancing both return on investment and return on equity.

1.5 In addition to the dynamic methods of appraisal, static investment calculations play an important role in investment decisions. Describe two static investment calculation methods.

Lösung: Two of the following static methods can be described: 1. Cost comparison method (Kostenvergleichsrechnung): Compares the average costs (per period or per unit) of two investment alternatives. The investment with the lowest costs is preferred. Only costs (fixed, variable, imputed depreciation and interest) are considered; revenues are omitted, so no statement about profitability can be made. 2. Profit comparison method (Gewinnvergleichsrechnung): Compares the average profits of investment projects by determining annual revenues and costs and calculating the difference. 3. Return on investment method (Rentabilitätsrechnung): Compares the profitability by setting average profit in relation to the invested capital. 4. Static payback period method (Statische Amortisationsrechnung): Calculates the period required for the invested capital to flow back to the company through cash surpluses (using either average or accumulation methods).