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BA213, Managerial Accounting NPV IRR Excel/Word Assignment Instructions The BA213 Corporation would like you to perform NPV and IRR analysis for two prospective capital investment

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BA213, Managerial Accounting NPV IRR Excel/Word Assignment Instructions The BA213 Corporation would like you to perform NPV and IRR analysis for two prospective capital investment projects. The data for these two projects is contained on the Data tab of the Excel workbook provided for this assignment. Assignment Requirements: Use the Excel workbook provided to compute the NPV and IRR of the two initial plans. Format your work using the exhibit on page 1487 of your text as an example. Complete your work for the initial data on the Initial NPV IRR tab of the Excel workbook provided. Recalculate the NPV and IRR of the two plans assuming that the initial cost of the plans will be $5,500,000. Complete your work for these revised numbers on the Revised NPV IRR tab of the Excel workbook provided. Answer the following questions in a Word document: 1. 2. 3. Referring to your calculations for the initial project costs, which plan, if any, should the company adopt and why? What qualitative factors other than financial analyses may the company consider in making their decision? Please state at least 3 specific items. Explain the relationship between NPV and IRR. Discuss the application of this relationship to the results you obtained for your calculations of the initial plans. Considering the results of the analysis with the lower cost (requirement 2): a. b. c. 1. If the company has the resources to pursue both plans, what would you recommend? ii. If the company may only pursue one plan, what would you recommend? 4. Submit your Excel and Word documents in your Blackboard/eLearn course assignment area. BA213 NPV IRR Assignment Data Sheet 6 Project Name 8 Initial Cost 9 Yearly Cash Inflows: BA211 BA212 6,000,000 6,000,000 10 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,700,000 2,000,000 2 12 13 14 15 16 17 18 19 4 10 10 10 10 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,700,000 ,400,0001,400,000 1,000,000 700,000 400,000 100,000 3,600,000 20 21 Required Rate of 22 Return 20% 20% 23 24 Data Initial NPV IRR Revised NPV IRR Type here to search BA213, Managerial Accounting NPV IRR Excel/Word Assignment Instructions The BA213 Corporation would like you to perform NPV and IRR analysis for two prospective capital investment projects. The data for these two projects is contained on the Data tab of the Excel workbook provided for this assignment. Assignment Requirements: Use the Excel workbook provided to compute the NPV and IRR of the two initial plans. Format your work using the exhibit on page 1487 of your text as an example. Complete your work for the initial data on the Initial NPV IRR tab of the Excel workbook provided. Recalculate the NPV and IRR of the two plans assuming that the initial cost of the plans will be $5,500,000. Complete your work for these revised numbers on the Revised NPV IRR tab of the Excel workbook provided. Answer the following questions in a Word document: 1. 2. 3. Referring to your calculations for the initial project costs, which plan, if any, should the company adopt and why? What qualitative factors other than financial analyses may the company consider in making their decision? Please state at least 3 specific items. Explain the relationship between NPV and IRR. Discuss the application of this relationship to the results you obtained for your calculations of the initial plans. Considering the results of the analysis with the lower cost (requirement 2): a. b. c. 1. If the company has the resources to pursue both plans, what would you recommend? ii. If the company may only pursue one plan, what would you recommend? 4. Submit your Excel and Word documents in your Blackboard/eLearn course assignment area. BA213 NPV IRR Assignment Data Sheet 6 Project Name 8 Initial Cost 9 Yearly Cash Inflows: BA211 BA212 6,000,000 6,000,000 10 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,700,000 2,000,000 2 12 13 14 15 16 17 18 19 4 10 10 10 10 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,700,000 ,400,0001,400,000 1,000,000 700,000 400,000 100,000 3,600,000 20 21 Required Rate of 22 Return 20% 20% 23 24 Data Initial NPV IRR Revised NPV IRR Type here to search

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