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calculate payback period,Discount payback,NPR,iRR by Excel function if posible Capital Budgeting Spreadsheet Example Module VIII Name: Date: Three independent project are under consideration for capital

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calculate payback period,Discount payback,NPR,iRR by Excel function if posible

image text in transcribed Capital Budgeting Spreadsheet Example Module VIII Name: Date: Three independent project are under consideration for capital budgeting purpose to evalute all th Their respective initial investment,cost of capital, and cash flows are provided below.Use the follo ALL CACULATE BY EXCEL Function Project 1 Initial Investment Cost of Capital Target Payback Period $ Initial Investment Year Year Year Year Year 1 2 3 4 5 125,000 Project 2 $ 200,000 8% 4 years 10% 4 years Project 1 $ (125,000) $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 40,000 Cash Flow Cum. CF $ (125,000) $ (95,000) $ (65,000) $ (35,000) $ (5,000) $ 35,000 Project 1 Project 2 Project 3 $ 160,000 12% 4 years Cum. CF $ (125,000) $ (125,000) $ 27,778 $ (97,222) $ 25,720 $ (71,502) $ 23,815 $ (47,687) $ 22,051 $ (25,636) $ 27,223 $ 1,587 Discounted CF Project 3 Payback Period Discounted Payback NPV IRR ALL CACULATE BY EXEL FUNCTION Project 2 $ (200,000) $ 45,000 $ 45,000 $ 60,000 $ 60,000 $ 60,000 Which project(s) should be accepted? pital budgeting purpose to evalute all three project and indicate which project should be undertaken assuming there is no budget constraint. h flows are provided below.Use the following capital budget echniques Cum. CF $ (200,000) $ (155,000) $ (110,000) $ (50,000) $ 10,000 $ 70,000 (s) should be accepted? Cum. CF Project 3 $ (200,000) $ (200,000) $ (160,000) $ 40,909 $ (159,091) $ 35,000 $ 37,190 $ (121,901) $ 40,000 $ 45,079 $ (76,822) $ 45,000 $ 40,981 $ (35,841) $ 50,000 $ 37,255 $ 1,414 $ 60,000 Discounted CF Cum. CF $ (160,000) $ (125,000) $ (85,000) $ (40,000) $ 10,000 $ 70,000 Cum. CF $ (160,000) $ (160,000) $ 31,250 $ (128,750) $ 31,888 $ (96,862) $ 32,030 $ (64,832) $ 31,776 $ (33,056) $ 34,046 $ 989 Discounted CF here is no budget constraint

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