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Lets assume a firm is considering investing in two projects that has the following cash flows: Interest rate for two projects is 10%. Date Project
Lets assume a firm is considering investing in two projects that has the following cash flows:
Interest rate for two projects is 10%.
Date | Project A | Project B |
14-Dec-21 | -1000 | -1000 |
14-Dec-22 | 100 | 700 |
14-Dec-23 | 200 | 600 |
14-Dec-24 | 300 | 500 |
14-Dec-25 | 400 | 400 |
14-Dec-26 | 500 | 300 |
14-Dec-27 | 600 | 200 |
14-Dec-28 | 700 | 100 |
Could you calculate the following measures
NPV = | ||
NPV (precisely) = | ||
PI | ||
IRR = | ||
IRR (precisely) = | ||
MIRR = | ||
Payback period = |
Could you draw grafic, that will show how NPV is dependant from interesr rate?
Could you suggest, in what project we need to invest our money? Why?
Please all calculations and formulas using Excel.
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