Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi, I need help with the following assignment please- Calculate the following problems using Microsoft Excel : Calculate the NPV for each project and determine

Hi,

I need help with the following assignment please-

Calculate the following problems using Microsoft Excel:

  • Calculate the NPV for each project and determine which project should be accepted.
  • Project AProject BProject CProject DInital Outlay(105,000.000)(99,000.00)(110,000.00)(85,000.00)Inflow year 153,000.0051,000.0025,000.0045,000.00Inflow year 250,000.0047,000.0055,000.0050,000.00Inflow year 348,000.0041,000.0015,000.0030,000.00Inflow year 430,000.0052,000.0021,000.0062,000.00Inflow year 535,000.0040,000.0035,000.0068,000.00Rate7%10%13%18%Your company is considering three independent projects. Given the following cash flow information, calculate the payback period for each. If your company requires a three-year payback before an investment can be accepted, which project(s) would be accepted?
  • Project DProject EProject FCost205,000.00179,000.00110,000.00Inflow year 153,000.0051,000.0025,000.00Inflow year 250,000.0087,000.0055,000.00Inflow year 348,000.0041,000.0021,000.00Inflow year 430,000.0052,000.009,000.00Inflow year 524,000.0040,000.0035,000.00Using market value and book value (separately), find the adjusted WACC, using 30% tax rate.

ComponentBalance Sheet ValueMarket ValueCost of CapitalDebt5,000,000.006,850,000.008%Preferred Stock4,000,000.002,200,00.0010%Common Stock2,000,000.005,600,000.0013%

Thank You!!

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

Healthcare Finance: An Introduction To Accounting And Financial Management

Authors: Louis Gapenski

6th Edition

1567937411, 978-1567937411

More Books

Students also viewed these Finance questions

Question

Explain the steps involved in training programmes.

Answered: 1 week ago

Question

What are the need and importance of training ?

Answered: 1 week ago