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Information presented below pertains to the cash flows of three mutually exclusive investment proposals and is also included in the file linked here. Proposal A
Information presented below pertains to the cash flows of three mutually exclusive investment proposals and is also included in the file linked here. Proposal A Proposal B Proposal C Initial investment $ $ $ Cash flow from operations Year Year Year Disinvestment Life years Discount rate for all proposals a Prepare a table in Excel to compute the net present value for each proposal, A B and C In your formulas, reference the discount rate used for all of your calculations to a single cell. Hint: By referencing all of your calculations to a single cell, you can easily develop a sensitivity analysis by changing the discount rate in that cell and the output net present value will update automatically. Note: Round your answers to the nearest whole dollar. Use a negative sign to indicate a cash outflow. Proposal A Proposal B Proposal C Initial investment Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Net present value b Prepare a new table listing the discount rate from to along with the net present value for each proposal, A B and C Hint: Using the table from part a enter each percentage. Take the results and copy and paste values into the new table. Note: Round your answers to the nearest whole dollar. Net Present Value Discount Rate Proposal A Proposal B Proposal C Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer c Prepare a line chart showing the net present value of proposals A B and C with discount rates ranging from to
Information presented below pertains to the cash flows of three mutually exclusive investment proposals and is also included in the file linked here.
Proposal A Proposal B Proposal C
Initial investment $ $ $
Cash flow from operations
Year
Year
Year
Disinvestment
Life years
Discount rate for all proposals
a Prepare a table in Excel to compute the net present value for each proposal, A B and C In your formulas, reference the discount rate used for all of your calculations to a single cell. Hint: By referencing all of your calculations to a single cell, you can easily develop a sensitivity analysis by changing the discount rate in that cell and the output net present value will update automatically.
Note: Round your answers to the nearest whole dollar. Use a negative sign to indicate a cash outflow.
Proposal A Proposal B Proposal C
Initial investment Answer
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Net present value
b Prepare a new table listing the discount rate from to along with the net present value for each proposal, A B and C Hint: Using the table from part a enter each percentage. Take the results and copy and paste values into the new table.
Note: Round your answers to the nearest whole dollar.
Net Present Value
Discount Rate Proposal A Proposal B Proposal C
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c Prepare a line chart showing the net present value of proposals A B and C with discount rates ranging from to
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