Build the NPV profile and find IRR for the 2

examples

Use Excel for the calculations and for building

a graph.

Try your best to design an optimal solution

process. use NPV and IRR formulas and

ensure that you get the same values.

1. purchasing a new laptop.

Let's assume the Apple store sells a laptop for

$1,598 today and Adobe Suite for a $30 monthly

payment (at the beginning of each month).

You are offered to join a company that will pay you

$350 per month (at the end of each month) for

small Adobe Photoshop work, that you can do fast

and easilv.

The cost of capital is 8% with c.c.

What is the PV for this opportunity?

2. AMD needs to fight the shortage of graphic cards and increase production.

The company has an opportunity to build a new plant.

The project costs $70 million (PV) and will take 1 year.

The cost of capital is 6% with c.c.

Plant depreciation for the 3 years in operation is60% total.

The expected profit on increased production is $320 per card. The new plant's production capacity is 100,000 graphic cards per year, starting after 1st year and lasting for 3 years.

What is NPV?