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Hi I need help with the Problem 1 NPV tab of this workbook, can someone help me out please? I need it for Project A,
Hi I need help with the Problem 1 NPV tab of this workbook, can someone help me out please? I need it for Project A, B, C & D.
Please show your work in the cells. Use Excel formulas instead of writing the values/answers directly in the cell.
Instructions 1. You have three problems - one on each tab of this Excel file. 2. Please show your work in the cells. Use Excel formulas instead of writing the values/answers directly in the cell. The instructor will then know where you made a mistake and provide you valuable feedback and partial credit (if a 3. It is recommended to watch the assigned videos in week # 4. Total Points: 10 s directly in the cell. k and partial credit (if appropriate). Calculate the NPV for each project and determine which project should be accepted. Initial Outlay Inflow year 1 Inflow year 2 Inflow year 3 Inflow year 4 Inflow year 5 Rate NPV = Project A (105,000.00) 53,000.00 50,000.00 48,000.00 30,000.00 35,000.00 7% $75,228.32 =NPV(B11,B6:B10)+B5 Answer: Refer to the Solved Example 4 on Page 274 of your text. Project B (99,000.00) 51,000.00 47,000.00 41,000.00 52,000.00 40,000.00 10% $77,364.07 =NPV(C11,C6:C10)+C5 Project C Project D (110,000.00) (85,000.00) 25,000.00 45,000.00 55,000.00 50,000.00 15,000.00 30,000.00 21,000.00 62,000.00 35,000.00 68,000.00 13% 18% -$2,531.00 $69,006.08 =NPV(D11,D6:D10)+D5 =NPV(E11,E6:E10)+E5 Your company is considering three independent projects. Given the following cash flow information, calculate the pa If your company requires a three-year payback before an investment can be accepted, which project(s) would be acCe Cost Inflow year 1 Inflow year 2 Inflow year 3 Inflow year 4 Inflow year 5 Payback Period Project D 205,000.00 53,000.00 50,000.00 48,000.00 30,000.00 24,000.00 5 years Project E 179,000.00 51,000.00 87,000.00 41,000.00 52,000.00 40,000.00 3years Answer: Refer to the Solved Example 1 on Page 272 of your text. Calculations Year 1 Year 2 Year 3 Year 4 Year 5 $152,000.00 $102,000.00 $54,000.00 $24,000.00 $0.00 $128,000.00 $41,000.00 $0.00 -$52,000.00 -$92,000.00 Formulas Year 1 Year 2 Year 3 Year 4 Year 5 =B5-B6 =B19-B7 =B20-B8 =B21-B9 =B22-B10 =C5-C6 =C19-C7 =C20-C8 =C21-C9 =C22-C10 ing cash flow information, calculate the payback period for each. e accepted, which project(s) would be acCepted? Project F 110,000.00 25,000.00 55,000.00 21,000.00 9,000.00 35,000.00 4 years $85,000.00 $30,000.00 $9,000.00 $0.00 -$35,000.00 =D5-D6 =D19-D7 =D20-D8 =CD1-D9 =D22-D10 Using market value and book value (separately), find the adjusted WACC, using 30% tax rate. Component Debt Preferred Stock Common Stock Balance Sheet Value 5,000,000.00 4,000,000.00 2,000,000.00 $11,000,000.00 =SUM(B5:B7) Refer to the Solved Example 6 on Page 370 of your text. Book Value Weights Debt 45.45% Preferred Stock 36.36% Common Stock 18.18% FORMULAS Debt Preferred Stock Common Stock =B5/B8 =B6/B8 =B7/B8 Market Value 6,850,000.00 2,200,000.00 5,600,000.00 $14,650,000.00 =SUM(C5:C7) CC, using 30% tax rate. Cost of Capital 8% 10% 13% TAX 31% ANSWER Market Value Weights Debt 46.76% Preferred Stock 15.02% Common Stock 38.23% Adjusted WACC Market Value Book Value FORMULAS Debt Preferred Stock Common Stock FORMULAS =C5/C8 =C6/C8 =C7/C8 Market Value Book Value ANSWER Adjusted WACC FORMULASStep by Step Solution
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