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M 3 Assignment ( 4 6 points ) To complete this homework, you will enter your answers to the questions below on Tab 1 of

M3 Assignment (46 points)To complete this homework, you will enter your answers to the questions below on Tab 1 of the M3 submission template. Once you have completed Tab 1, you will copy it to Tab 2(copy range is A1:C58). Once youve copied your answers to Tab 2, you will click on Formulas, then on Show Formulas.The homework must be completed according to the Principles of Spreadsheet Design. To complete this homework, you will enter your answers to the questions below on Tab 1 of the M3
submission template. Once you have completed Tab 1, you will copy it to Tab 2(copy range is
A1:C58). Once you've copied your answers to Tab 2, you will click on "Formulas," then on "Show
Formulas."
The homework must be completed according to the Principles of Spreadsheet Design. Remember that
you are graded on the assignment as well as your accuracy in using the Principles of Spreadsheet
Design.
You are evaluating Machines A and B to determine which one to buy. Find their payback
periods, and then use them as the basis for choosing a machine. Justify your answer.
You are evaluating a purchase using the net present value method. Using an interest rate of
5%, find the NPV for this asset. Based on this, should you buy the asset or not? Justify your
answer.
You have another possible purchase with an NPV of $5,000. Should you invest in this asset, or
the asset in Problem 2? Justify your answer. Find the IRR of the cash flows of the asset below. If your cost of capital is 12%, should you
invest in this asset? Justify your answer.
You are considering the purchase of another asset with an IRR of 11%. Should you invest in
this asset or the one in Problem 4? Justify your answer. \table[[M3 Indiv. Assignment Submission Template],[\table[[PROBLEM 1,,]]],[Inputs],[Yr,A,B],[0],[1],[2],[3],[4|],[5],[Outputs],[],[1],[2],[1+2],[3],[1+2+3],[4],[1+2+3+4],[5],[1+2+3+4+5],[Which Machine?],[Justification?],[PROBLEM 2],[Inputs],[Interest rate],[0],[1(],[22],[33,],[,,],[Outputs],[NPV,,],[Invest?,,],[Justificatiol,,]]
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