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Can you please help me with the formulas to calculate on the excel spreadsheet? Capital Budgeting BioMed Engineering is considering two mutually exclusive investments. The
Can you please help me with the formulas to calculate on the excel spreadsheet?
Capital Budgeting
BioMed Engineering is considering two mutually exclusive investments. The projects' expected net cash flows are as follows:
In your report, identify which project would be selected (assuming they are mutually exclusive) for each investment criterion. Note that cash outflows (costs) are given in parenthesis. Employ the Excel file to answer the following questions.
Part 1: Net Present Value
- Use the Excel NPV function to calculate the NPV for each project at a cost of capital equal to 8%. Note the range of values in the NPV function should not include the initial cost (CF0). Make sure to add this separately.
- Use the Excel NPV function to calculate the NPV for each project at a cost of capital equal to 16%. Note the range of values in the NPV function should not include the initial cost (CF0). Make sure to add this separately.
- Construct NPV profiles (a data table of project NPVs for different costs of capital) using the Excel NPV function for Projects A and B.
- HOW DO YOU CREATE A GRAPH ON EXCEL?? Graph both NPV profiles in a single plot with NPV on the y-axis and cost of capital on the x-axis (label the x-axis, y-axis, chart title, and axis). Use a scatter with straight lines chart type.
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