Must be done on Excel

Total Operating Cash Flow XXXXX XXXXX XXXXX XXXXX Terminal: 1) Change in net WC 2) Salvage value (after tax) Total $ $ $ Salvage Value Before Tax (1-T) $ 20,000 XXXXX XXXXX Project Net Cash Flows $ $ $ $ $ NPV = IRR = Payback= Q#1 Would you accept the project based on NPV, IRR? Would you accept the project based on Payback rule if project cut-off is 3 years? Q#2 Impact of 2017 Tax Cut Act on Net Income, Cash Flows and Capital Budgeting (Investment ) Decisions (a) Estimate NPV, IRR and Payback period of the project if equipment is fully depreciated in first year and tax rate equals to 21%. Would you accept or reject the project? (b) As a CFO of the firm, which of the above two scenario (a) or (b) would you choose? Why? Q#3 How would you explain to your CEO what NPV means? Q#4 What are advantages and disadvantages of using only Payback method? Q#5 What are advantages and disadvantages of using NPV versus IRR? Q#6 Explain the difference between independent projects and mutually exclusive projects. When you are confronted with Mutually Exclusive Projects and have coflicts with NPV and IRR results, which criterion would you use (NPV or IRR) and why? Total Operating Cash Flow XXXXX XXXXX XXXXX XXXXX Terminal: 1) Change in net WC 2) Salvage value (after tax) Total $ $ $ Salvage Value Before Tax (1-T) $ 20,000 XXXXX XXXXX Project Net Cash Flows $ $ $ $ $ NPV = IRR = Payback= Q#1 Would you accept the project based on NPV, IRR? Would you accept the project based on Payback rule if project cut-off is 3 years? Q#2 Impact of 2017 Tax Cut Act on Net Income, Cash Flows and Capital Budgeting (Investment ) Decisions (a) Estimate NPV, IRR and Payback period of the project if equipment is fully depreciated in first year and tax rate equals to 21%. Would you accept or reject the project? (b) As a CFO of the firm, which of the above two scenario (a) or (b) would you choose? Why? Q#3 How would you explain to your CEO what NPV means? Q#4 What are advantages and disadvantages of using only Payback method? Q#5 What are advantages and disadvantages of using NPV versus IRR? Q#6 Explain the difference between independent projects and mutually exclusive projects. When you are confronted with Mutually Exclusive Projects and have coflicts with NPV and IRR results, which criterion would you use (NPV or IRR) and why