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Leave percentages with 1 decimal point. For the Proformas, you can leave as whole dollars. For the TMV and NPV problems, round to the nearest
Leave percentages with 1 decimal point. For the Proformas, you can leave as whole dollars. For the TMV and NPV problems, round to the nearest penny. Cells collored yellow are to be solved and cells colored green are to be filled in with information provided in the question You must show the excel formulas, not just the typed in value.
2 Investment Criteria You are considering an investment that costs $92,575 and has a cash inflow of $19,750 in Year 1 , $18,235 in Year 2, $38,710 in year 3, $25,500 in Year 4, and $18,400 in Year 5. The required return is 7%. \begin{tabular}{|r|l|} \hline & Cash Flows \\ \hline Y0 & \\ \hline Y1 & \\ \hline Y2 & \\ \hline Y3 & \\ \hline Y4 & \\ \hline Y5 & \\ \hline \end{tabular} Part A: What is the NPV of the project? Should you accept or reject the project? \begin{tabular}{|l|l|} \hline rate & \\ \hline NPV & \\ \hline Accept or Reject? & \\ \cline { 2 - 2 } \end{tabular} Part B: What is the payback period? If the cutoff period is 3 years, should we accept or reject? Payback (in years) No formual required. You can do the math here and enter the numeral to 2 decimal places. Accept or Reject? Part C: What is the IRR? IRR Part D: What is the average accounting return? AAR Part A: What is the NPV of the project? Should you accept or reject the project? \begin{tabular}{|l|l|} \hline rate & \\ \hline NPV & \\ \hline Accept or Reject? & \\ \cline { 2 - 3 } \end{tabular} Part B: What is the payback period? If the cutoff period is 3 years, should we accept or reject? Payback (in years) No formual required. You can do the math here and enter the numeral to 2 decimal places. Accept or Reject? Part C: What is the IRR? IRR Part D: What is the average accounting return? AAR Part E: What is the profitability index? Should you accept or reject? \begin{tabular}{|l|} \hline PI \\ \hline Accept or Reject? \end{tabular} Part F: Should we accept the project and why/why not (in 2-3 sentences). Accept or Reject? Supporting ReasonStep by Step Solution
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