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MIS 376 Chapter 2 Financial Calculation In-Class Activity Complete the following items using Microsoft Excel. You may use / modify/ copy the template provided by

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MIS 376 Chapter 2 Financial Calculation In-Class Activity Complete the following items using Microsoft Excel. You may use / modify/ copy the template provided by the textbook and posted in Moodle. Be sure to submit your work as a group in one single Excel file with cleary labeled answers Time Value of Money r (1 pts) What is the value of $200,000 three years from now assuming at 10% discount rate? Prese 2" (1 pts) will the value of S200.000 five years from now be higher or lower at a 10% discount rate? Explain Why? (3 pts) Calculate the value of the amount in question 2 using Excel. (1 pts) what is the present value of S200.000 received each year for 3 years at 10% discount 3. A rate? A (1 pts) Answer question 1 above using a discount rate of 8% k (1 pts) Answer question 2 above using a discount rate of 8% Project Financial Selection Calculations (3 pts) You undertake a project that requires an initial investment of $250,000. You expect to receive $100,000 a year for the next 3 years. If the discount rate is 10 percent, what is the net present value (NPV)? (1 pts) For the project described above, what is the ROI? (1 pts) For the project listed above, what is the Payback Period? Use the project payback chart template to identify in which year will the project become "profitable". Copy and paste your Payback chart from Excel into this document 9. Project Selection Decision 10. (4 pts) You are trying to choose between two projects as you do not have sufficient funding to accept both projects. Each project costs $100,000. Project A pays $30,000 a year for 4 years and project B pays $20,000 a year for 6 years. If your required rate of return (discount rate) is 10% which project should you choose and why

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