i must need excel for myla

Create a spreadsheet to answer the following questions: B20 The Drillago Company is involved in searching for locations in which to drill for oil The firm's current project requires an initial investmept of $15 million and has an estimated life of 10 years. The expected future cash inflows for the project are as shown in the following table. Cash Inflows Year $ 600,000 1 6 2 1,000,000 31 1,000,000 2000,000 3,000,000 3,500,000 4,000,000 8 4 5 10 6 11 7 12 8 6,000,000 13 9 8,000,000 14 12,000,000 10 15 16 The firm's current cost of capital is 13% 17 To Do 19 Create a spreadsheet to answer the following questions a. Calculate the project's set present value (NPV). Is the project acceptable under the NPV technique? Explain b. Calculate the project's internal rate of return (IRR). Is the project acceeptable under the IRR technique? Explain c. In this case, did the two methods produce the same results? Generally,, is there a preference between the NPV and IRR technique Explain d. Calcalate the payback period for the project If the firm usually accepts projects that harve payback periods between 1 and 7 years, is this project acceptable? 10 22 25 24 25 Solution Chapter 10 . e II Create a spreadsheet to answer the following questions: fx 20 x Solution Estimated life (years) Cost-of-capital (r) Initial investment 10 28 13% 29 S 15,000,000 30 31 Cash Flow Year S 15,000,000 600,000 1 34 1,000,000 1,000,0004 2,000,000 4 3,000,000 3,500,000 6 4.000,000 7 a0 6,000,000 8.000.000 41 12.000,000 10 a Caleulate the project's net present value (NPV) Is the project acceptable under the NPV technique? Explain NV than zero the project since the NPV is bCdeulate the project's internel rabe of return (TRR) 1s the project acceptable nder the IRR technigue? Explais Chapter 10 e 1C . SAMSUNG 8,000,000 12,000,000 10 . Calculate the project's net present value (NPV). Is the project acceptable under the NPV technique? Explain NVP the project since the NPV is than zero. b. Calculate the project's internal rate of return (IRR). Is the project acceptable under the IRR technique? Explain IRR the cost of capital (139%) the project since the IRR is c. In this case, did the two methods produce the same results? Generally, is there a preference between the NPV and IRR techniques? Explain. When the decision is simply accept or reject then the NPV and IRR method will always produce the same results. However, when ranking several projects the NPV method is preferred over the IRR method because the IRR method assumes the cashtows are reinvested at the IRR not the required cost of capital. 59 60 Is the statemen above true or false? The statement is 61 62 d. Calculate the payback period for the project. If the firm usually accepts projects that have payback periods between 1 and 7 years, is his project acceptable? Chapter 10 . SAMSUNG Create a spreadsheet to answer the following questions 820 Is the statengent ahove true or false The statement is 61 a Caleulate the payback period for the project If the firm usually sccepts projects thet hve payhak periods betweee I md 7 years, is this project acceptable 64 Payback Year 15,000,000 12 10 Paytark period (years) 7 years the project i sie th ck period is Heqaire Points 047, by using enll referone to the given data and the fetinn NPV, caleulale the set prseuf value of ojet t ve nither Acce Heject deending on wherler you would tke on the projeet or mot, hapter 10 SAMSUNG