Financial Modelling

Question 1 (45) Consider the following two cash flows Project X and Project Y. Assume the opportunity cost is 15% Year 0 1 2 3 Project x Cashflow -500 100 300 400 600 800 -1800 Project Y Year Cashflow 30-Jun-07 -500 14-Feb-08 200 14-Feb-09 300 14-Feb-10 400 14-Feb-11 600 14-Feb-12 800 13-Feb-13 -1800 4 5 6 11. Compute their respective net present values (NPV). use Excel to draw a graph of the NPV of each one these project as a function of the discount rate, and then find their respective internal rates of returns is accurate to at least 2 decimal places. [10+6+10+101 1.2. Assume there is only the possibility to invest in one of the two projects, make a comprehensive report (8 lines maximum) justifying why you would likely invest in one of the projects and not the other one (5) 1.3. If the first cash flow of Project Yoccurs on the 14-Feb-07, which one of the 2 projects is preferable? Justify (3 lines maximum) 141