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FIN 301-Principles of Finance Excel and Writing Assignment ABC Corporation options and calculated the cash flows resulting from each option as follows requires repairs or

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FIN 301-Principles of Finance Excel and Writing Assignment ABC Corporation options and calculated the cash flows resulting from each option as follows requires repairs or should be replaced ABC has evaluated the two Option A Repair the Machine Year Cash Flow 32 500 Option B: Buy a new Machine Cash low 450,000 95,300 165,000 137 800 26,100 You have recently been hired by ABC Corporation and your first assignment is to help them decide which of these two options should be pursued. You would ike to apply Capital Budgeting Time Value of Money concepts you have learnt in FIN 301 to analyze the problem and present your recommendation to your boss, Ms. Jane Austen. Conduct the analysis by calculating the following for each option 1. Net Present Value (NPV) 2 Internal Rate of Return (IRR) 3. Proftability Index(P) 4 Payback Period (PB) 5. Crossover Rate The company has a weighted Average Cost of Capital (WACC) ldiscount Rate) of 10%. For this anans your boss John Doe asked you to calculate NPV at ee different discount rates: 10% e current WACC), 12% and 14%

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