Question
Can someone help me answer Chapter 11 problem 1 in Financial Analysis with Microsoft Excel 7th edition? You are considering an investment in two projects,
Can someone help me answer Chapter 11 problem 1 in Financial Analysis with Microsoft Excel 7th edition?
You are considering an investment in two projects, A and B. Both projects will cost $100,000 and the project cash flows are as follows:
Year | Project A | Project B |
1 | 6,250.00 | 45,000.00 |
2 | 18,750.00 | 33,750.00 |
3 | 35,000.00 | 25,000.00 |
4 | 43,750.00 | 18,750.00 |
5 | 50,000.00 | 12,500.00 |
a. assume the the WACC is 8%, calculate the payback period, discounted payback period, NPV, PI, IRR, and MIRR. If the projects are mutually exclusive, which should be selected?
b. create an NPV profile chart for projects A and B. What is the exact crossover rate for these two projects?
Can you explain how you found these answers in excel.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started