B 1 J K C D E F G H FOUR QUESTIONS APPEAR HERE: PARTS a, b, c, and d 1 a. Find the NPV of the following Cash flow stream if the firm's required return is 10% 2 3 4 5 6 7 0 1 2 3 4 5 6 7 -700 125 175 155 100 115 0 125 8 NPV #N/A Use NPV function in Excel 9 10 Accept or reject? Yes or NO 11 Why? (in words) 12 13 Please show the math of the NPV in the yellow box below (type it out): 14 15 16 17 18 b. Find the IRR of the following project cash flow stream. Firm's required return is 11%. 19 20 0 1 2 3 4 5 21 -500 145 135 115 125 135 22 23 IRR #N/A Use IRR function in EXCEL 24 25 Accept or reject? Yes or NO 26 Why? (in words) 27 D E F G H 1 J B 28 Please show the math of the IRR below (type it out): 29 30 31 3 4 5 125 125 95 32 33 c. Find the payback of the following project cash flow. 34 35 0 1 2 36 -500 175 95 37 Cumulative CFS 38 39 40 Payback (Years) #N/A 41 42 43 44 d. Mutually exclusive projects 45 46 Find the project NPV and IRR for "A" and "B". Firm's required return is 7% 47 48 Project A Project B 49 0 -500 -500 50 1 125 250 51 2 185 165 52 3 195 135 53 4 200 125 54 55 56 57 NPV 58 IRR 59 60 Which project would you take and why? 61 62