1) tesla is planning to produce an all-electric family car and expects the following cash flows(in$million) at the end of each year:

year 0

cash flow-180;year 1 cash flow10; year2 cash flow20; year 3 cash flow 40; year5 cash flow 110.

the required return for the project is 11%.

a. create an excel spreadsheet with the present value of each cash flow. what is the projects Nvp?

b.there is an easier way: what is the NVp using excels Nvp function? note that excels Nvp function all the cash flows in the range, even the first one

2)you've estimated the following cash flows(in$) for a project: A. B.

year. cash flow

0 -5,600

1 1,325

2 2,148

3 3,472

required return for project is 8%

What is the IRR for the project?

3)you've estimated the following cash flows (in$) for two mutually exclusive projects

year. projectA projectB

0 -5,700 -8,550

1 1,325 1,325

2 2,148 2,148

3 4,429 8,245

the required return for both projects is 8%

What is the IRR for project B?

What is NVP for project A?

What is NVP for project B?