Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Excel Master It%! Problem As you have already seein. Excel does not have a function to calculate the payback period, so you will cteate your

image text in transcribed
Excel Master It%! Problem As you have already seein. Excel does not have a function to calculate the payback period, so you will cteate your own. Below, the cash flows for a project are shown. You need to calculate the pastack period using two different methods a. Calculate the payback period in a table. The first three columns of the table will be the year the cash flow for that year, and the cumulative cash flow. The fourth column will show the whole year for the pastrack. In other words, if the payback period is three plus years, this column will have a J. otherwise it will be a 0. The next column will calculate the fractional part of the payback period, or else in will display. The last column will add the previous two columns and display the final payback period calculation. You should also have a bull that displays the final payback period by itself and a cell that returns the correct siccept or reject decision based on the payback criteria . Write a mested IF statement that calculates the payback period using only the project cash flow column. The IF statement should return a value of "Never" if the project has no payback period. In contrast to the example we showed previously, the nested IF flinction should test for the back period starting with shorter payback periods and working toward longer payback periods. Another cellshould display the correct accept or reject decision based on the payback criteria Cash Flow 0 -$250,000 1 41,000 2 48,000 3 63,000 4 79,000 5 88,000 6 64,000 41,000 Required payback 5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Dynamic Asset Allocation With Forwards And Futures

Authors: Abraham Lioui , Patrice Poncet

1st Edition

0387241078,038724106X

More Books