can u help on clearly how to solve it in the excel sheet
f. What is the regular payback period for these two projects? Project A Time period Cash flow Cumulative cash flow 0 (375) (375) 1 (300) (675) 2 (200) (875) 3 (100) (975) 4 600 (375) 5 $600 225 6 $926 1,151 7 ($200) 951 Intermediate calculation for payback Payback using intermediate calculations Project B Time period Cash flow Cumulative cash flow Intermediate calculation for payback Payback using intermediate calculations Payback using PERCENTRANK 0 (575) (575) 1 $190 (385) 2 $190 (195) 3 $190 (5) 4 $190 185 5 $190 375 6 $190 565 7 $0 565 Ok because cash flows follow normal pattern. g. At a cost of capital of 12%, what is the discounted payback period for these two projects? WACC = 12% Project A Time period Cash flow Disc. cash flow Disc. cum. cash flow Intermediate calculation for payback Payback using intermediate calculations, 0 (375) (375) (375) (300) (268) (643) (200) (159) (802) 3 (100) (71) (873) 4 600 381 (492) 5 $600 340 (152) 6 $926 469 317 7 ($200) (90) 227 Project B Time period Cash flow Disc. cash flow Disc. cum. cash flow Intermediate calculation for payback Payback using intermediate calculations Discounted Payback using PERCENTRANK 0 (575) (575) (575) 1 190 170 2 190 151 (254) 3 190 135 (119) 4 190 1 21 2 5 $190 108 110 6 $190 96 206 7 $0 0 206 (405) Ok because cash flows follow normal pattern. f. What is the regular payback period for these two projects? Project A Time period Cash flow Cumulative cash flow 0 (375) (375) 1 (300) (675) 2 (200) (875) 3 (100) (975) 4 600 (375) 5 $600 225 6 $926 1,151 7 ($200) 951 Intermediate calculation for payback Payback using intermediate calculations Project B Time period Cash flow Cumulative cash flow Intermediate calculation for payback Payback using intermediate calculations Payback using PERCENTRANK 0 (575) (575) 1 $190 (385) 2 $190 (195) 3 $190 (5) 4 $190 185 5 $190 375 6 $190 565 7 $0 565 Ok because cash flows follow normal pattern. g. At a cost of capital of 12%, what is the discounted payback period for these two projects? WACC = 12% Project A Time period Cash flow Disc. cash flow Disc. cum. cash flow Intermediate calculation for payback Payback using intermediate calculations, 0 (375) (375) (375) (300) (268) (643) (200) (159) (802) 3 (100) (71) (873) 4 600 381 (492) 5 $600 340 (152) 6 $926 469 317 7 ($200) (90) 227 Project B Time period Cash flow Disc. cash flow Disc. cum. cash flow Intermediate calculation for payback Payback using intermediate calculations Discounted Payback using PERCENTRANK 0 (575) (575) (575) 1 190 170 2 190 151 (254) 3 190 135 (119) 4 190 1 21 2 5 $190 108 110 6 $190 96 206 7 $0 0 206 (405) Ok because cash flows follow normal pattern
