Bascilla, Incorporated is trying to determine the value of several projects. Currently there are four being examined:

Required:

Compute the Net Present Value of each project.

Examine the Internal Rate of Return for each project.

Compute the Profitability Index for all projects.

Use the PV() function to determine the TVM factors. Be sure to put a "-hyphen" sign before the function and for cash out flows, and use "1" as the PMT and FV amounts as necessary.

Please show formula for the yellow fields, thank you.

Hurdle Rate 12\% Automation requires a working capital amount to begin which will be released at year 10 . The equipment will require a major repair at year 4 . $25,000 $48,000 For an answer to be graded as correct, you must use an Excel formula: 1. Begin each formula with an = sign. 2. Reference cells, instead of entering values. Example: =B3+C3 Bascilla, Incorporated is trying to determine the value of several projects. Currently there are four being examined: \begin{tabular}{|c|c|c|c|c|c|c|} \hline Project & \multicolumn{2}{|c|}{ Automation } & Hire Extra Crew & \begin{tabular}{l} Acquire a \\ Supplier \end{tabular} & \begin{tabular}{c} Purchase Latest \\ Model of Equipment \end{tabular} & \\ \hline Initial Cost & $ & 650,000 & 91,000 & 1,200,000 & 435,000 & \\ \hline Salvage Value & $ & 90,000 & N/A & N/A & 133,000 & \\ \hline Annual Increase to Net Income & $ & 64,000 & 17,000 & 46,000 & 46,000 & \\ \hline Project Life (years) & & 10 & 15 & 20 & 8 & \\ \hline Hurdle Rate & & 12% & & & & \\ \hline \multicolumn{6}{|c|}{ Automation requires a working capital amount to begin which will be released at year 10 . } & 25,000 \\ \hline \multicolumn{6}{|c|}{ The equipment will require a major repair at year 4 . } & 48,000 \\ \hline \end{tabular} Required: Compute the Net Present Value of each project. Examine the Internal Rate of Return for each project. Compute the Profitability Index for all projects. Use the PV() function to determine the TVM factors. Be sure to put a "-" sign before the function and for cash out flows, \begin{tabular}{|c|c|c|c|c|c|c|} \hline 4 & A & B & C & D & E & F \\ \hline 37 & & & & & & \\ \hline \multicolumn{5}{|c|}{ Acquire a Supplier } & & \\ \hline 39 & Event & Amount & Factor & NPV & & \\ \hline 40 & Initial Cost & & 1.000000 & & & \\ \hline 41 & Net Income (annual) & & 7 & & & \\ \hline 42 & & & NPV & & & \\ \hline \multicolumn{5}{|l|}{43} & & \\ \hline 44 & \multicolumn{4}{|c|}{ Purchase Latest Model of Equipment } & & \\ \hline 45 & Event & Amount & Factor & NPV & & \\ \hline 46 & Initial Cost & & 1.000000 & & & \\ \hline 47 & Net Income (annual) & & L & & & \\ \hline 48 & Depreciation Expense (annual) & & F & & & \\ \hline 49 & Repair at year 4 & & F & & & \\ \hline 50 & Salvage Value & & 7 & & & \\ \hline 51 & & & NPV & & & \\ \hline \multicolumn{7}{|l|}{52} \\ \hline 53 & \multicolumn{3}{|c|}{ Which project's IRR is closest to the Hurdle Rate? } & & & \\ \hline 54 & \multicolumn{3}{|c|}{ Which project has an IRR lower than the Hurdle Rate? } & & & \\ \hline 55 & & & & & & \\ \hline \end{tabular}