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Hi please help with questions 3 and 4 in the first picture, the answers to 1 and 2 are in the second picture. Please include
Hi please help with questions 3 and 4 in the first picture, the answers to 1 and 2 are in the second picture. Please include excel formulas, I will thumbs up if answer is correct thank you
NPV=t=0n(1+k)tNCFtPB=Yearsbeforecostrecovery+CashflowduringtheyearRemainingcosttorecoverPI=InitialinvestmentNPV+InitialinvesmentNPV=t=0n(1+IRR)tNCFt=0PVCost=(1+MIRR)nTV Evaluate the following project using the appropriate functions in Excel: 1. Find the NPV and IRR of a project with the following cash flows and a 12% cost of capital. Also calculate the MIRR assuming a reinvestment rate of 8% (recall that the modified IRR assumes reinvestment is at the cost of capital or another rate rather than the IRR). Use IF statements to add an accept/reject decision for each. 2. Calculate the Profitability Index of the project. The profitability index weights the PV of future cash flows by the initial investment in order to rank projects by return to each dollar invested. Would the project be accepted? 3. Construct a table to calculate the NPV for costs of capital between 0% and 40%. Graph the results of table to show the NPV profile. Label your axes and customize the graph as necessary. 4. What is the Payback Period for the cash flows in (1)? Calculate with at least one method. Consider using IF, AND, ABS, MAX, SUM, ROUND, COUNTIF, and/or VLOOKUP in your formulas. Cost of Capital =12% Reinvestment Rate =8% Future Value of Cash Inflows =$10,0001.084+$10,0001.083+$11,0001.082+$17,0001.08+ $12,000 Future Value of Cash Inflows =$69,392.4096 MIRR = (Future Value of Cash Inflows / Initial Investment)^(1/Time Period) 1 MIRR =($69,392.4096/$40,000)(1/5)1 MIRR =1.73481024(1/5)1 MIRR =1.11651 MIRR =0.1165 or 11.65% Answer to Question 2: Cost of Capital =12% Present Value of Cash Inflows =$10,000/1.12+$10,000/1.122+$11,000/1.123+$17,000/1.124+ $12,000/1.125 Present Value of Cash Inflows =$42,343.0225 Profitability Index = Present Value of Cash Inflows / Initial Investment Profitability Index =$42,343.0225/$40,000 Profitability Index =1.06 Yes, the project should be accepted as profitability index is higher than 1.00Step by Step Solution
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