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How do I find PVIF @ 12.55% and 13.35%? formula in excel please Risk-adjusted rates of return using CAPM Centennial Catering, Inc., is considering two

How do I find PVIF @ 12.55% and 13.35%? formula in excel please image text in transcribed
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Risk-adjusted rates of return using CAPM Centennial Catering, Inc., is considering two mutually exclusive investments. The company wishes to use a CAPM-type risk-adjusted discount rate (RADR) in its analysis. Centennial's managers believe that the appropriate market rate of return is 11.5%, and they observe that the current risk-free rate of return is 7.3%. Cash flows associated with the two projects are shown in the following table. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Project X Project Y Initial investment (CF) $71,000 $81,000 Year(t) Cash inflows (CF) $30,000 $22,000 2 30,000 27,000 30,000 40,000 30,000 47,000 1 3 4 a. Use a risk-adjusted discount rate approach to calculate the net present value of each project, given that project X has an RADR factor of 1.25 and project Y has an RADR factor of 1.44. The RADR factors are similar to project betas. (Hint: Use the following equation to calculate the required project return for each: r=Rp+bx ('m-RE).) b. Discuss your findings in part (a), and recommend the preferred project. a. The risk-adjusted discount rate for project X will be 12.55 %. (Round to two decimal places.) The risk-adjusted discount rate for project will be 13.35 %. (Round to two decimal places.) The net present value for project X is $. (Round to the nearest cent.) A B C D E E F G 1 RADR X 2 RADR Y 12.55% 13.35% Present Value of Cash Flows PVIF at 13.35% Project X Project Y 4 Year PVIF at 12.55% WEB OWN Project X Project Y 0 $ (71,000.00) $ (81,000.00) 1 $ 30,000.00 $ 22,000.00 2 $ 30,000.00 $ 27,000.00 3 $ 30,000.00 $ 40,000.00 4 $ 30,000.00 $ 47,000.00 10 11 12 13

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