Imagine you are working as an investment analyst for ABC Company, you are given 100,000$ to allocate for 5 different investment opportunities. You may select any combination of investments if the sum of initial cash outlays are equal to $100,000. Use NPV analysis in Excel to determine which out of these 5 Investments (or combination of) will be the most profitable. Provide an answer to the following three questions in an Excel workbook. 1) If this $100,000 of capital is financed in the way shown below; calculate the WACC for this amount of capital. (corporate tax rate of 20%).

Long term Loan	Short term Loan	Mortgage Loan	Equity
15,000$ @ 5%	5,000$ @ 8.5%	60,000$ @ 3%	20,000$ @ 7%

2) Find out with single investment or combination of investments yields the highest NPV. Use Excel to calculate each --> You will be graded on your use of formulas in excel. 3) For each Investment option calculate the IRR (Internal Rate of Return). Option 1 A $25,000 initial investment which provides cash flows in the following way:

Year 1	Year 2	Year 3	Year 4	Year 5
8,000$	9,000$	11,000$	$12,000	$8,500

Option 2 An annuity which provides payments of 7000$ at the end of year for 15 years. The initial investment is $75,000. Option 3 A $50,000 initial investment that provides cash flows in the following way:

Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7
2,000	$4,000	$8,000	$10,000	$12,000	$14,000	$16,000

Option 4 A $50,000 initial investment that provides cash flows in the following way:

Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7
25,000	$4,000	$8,000	$10,000	$12,000	$1,000	$1,000

Option 5 A $100,000 Invesment which provides 5000$ per year for the first 5 years and then 10,000$ per year for an additional 9 years.