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Cash flows for two mutually exclusive projects are given below. For each project, calculate 1) NPV, 2) IRR, and 3) payback period. Insert a text
Cash flows for two mutually exclusive projects are given below. For each project, calculate 1) NPV, 2) IRR, and 3) payback period. Insert a text box and state the project selection according to the 4) NPV method, 5) IRR method, and 6) payback period method. Assume the payback period cutoff is 4 years. Use appropriate cell formats.
I am having trouble solving for the payback periods for both questions 2 and 3. See attachment
Cash flows for two mutually exclusive projects are given below. For each project, calculate 1) NPV, 2) IRR, and 3) payback period. Insert a text box and state the project selection according to the 4) NPV method, 5) IRR method, and 6) payback period method. Assume the payback period cutoff is 4 years. Use appropriate cell formats. Year 0 1 2 3 4 5 6 7 WACC NPV IRR Payback period Project A ($2,000) 100 200 300 400 500 600 700 12% ($379.20) 7.12% Project B ($2,000) 700 600 500 400 300 200 100 $30.20 12.63% A ($2,000) ($1,900) ($1,700) $300 $700 $1,200 $600 $1,300 B ($2,000) ($1,300) ($700) $500 $900 $1,200 $200 $300 Answers NPV ($379.20) IRR 7.12% Payback period 5.83 $30.20 12.63% 3.50 , 2) IRR, and 3) 5) IRR method, and mats. Use appropriate formulas, functions, cell references, and number formats for calculations. Cash flows for two mutually exclusive projects are given below. For each project, calculate 1) NPV, 2) IRR, and 3) payback period. Insert a text box and state the project selection according to the 4) NPV method, 5) IRR method, and 6) payback period method. Assume the payback period cutoff is 4 years. Use appropriate cell formats. Year 0 1 2 3 4 5 6 7 WACC NPV IRR Payback period Project A ($1,000) 100 200 300 400 500 0 0 12% $0.18 12.01% Project B ($2,000) 100 200 300 400 500 600 700 ($379.20) 7% A ($1,000) ($900) ($700) $300 $700 $1,200 $0 $0 B ($2,000) ($1,900) ($1,700) $300 $700 $1,200 $600 $1,300 Answers NPV IRR Payback period $0.18 ($379.20) 12.01% 7.12% 4.00 5.83 PV, 2) IRR, and 3) d, 5) IRR method, and ormats. Use appropriate formulas, functions, cell references, and number formats for calculationsStep by Step Solution
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