Number ACC-212 (FALL 2021) Shes A 7 Bikes "R" US is considering two capital investment proposals to add a new line of the tots current in the nvestments wou bien a new macet C G produce the new line of bikes Estimates regarding each project are provided below 10 harvestment X-Treme Mountain Bike Hibrid Mountain Bike S750 000 11 Annual Net Income $1.200.000 12 Net annual cash flow 75.000 30 000 202.02 13 Estimated Useful Life (years) 2010 14 Salvage Value 15 D 16 Both projects are mutually exclusive te Bikes "R"Us can only afford to select one of the projects and not both 17 The company requires a 10% rate of return on the investments 18 19 Present Value of an Annuity of 1 20 Periods 94 1046 21 12 3890 3701 3. 2005 22 4 488 4355 4111 23 24 Answer the questions below 25 NOTE In order to receive full credit you must use Excel formulas in each cell with a 26 27 (a) Compute the Cash Payback period for both projects (6 points) 28 Be sure to calculate the cost of Capital Investment and Net Annual Cash Flow for each project as well 29 NOTE. In order to receive full credit you must use Excel formulas in each call with a?! 30 31 (b) Compute the Net Present Value for both projects (12 points) 32 Be sure to calculate the Present Value of Net Cash Flows and Cost of Capital Investment for each project and state whether to accept or reject the proposal based on the 33 Net Present Value calculated. 34 NOTE: In order to receive full credit, you must use Excel formulas in each cell with a 35 36 (c) Compute the Profitability Index for both projects. (points) 37 Be sure to calculate the present Value of Net Cash Flows and Cost of Capital Investment for each project. 38 NOTE: In order to receive full credit you must use Excel formulas in each call with a 40 (d) Compute the Internal Rate of Return for both projects. 12 points): 41 Be sure to calculate the cost of Capital Investment. Not Annual Cash Flow, and internal Rate of Return Factor for each project. Also, state whether to accept or reject 42 the shacern the Internal Data Renated Project 9 11 39 Alignment fi ACC-212 (FALL 2021) Number Formatting Table Styles Styles B NOTE in order to receive full credit, you must use Excel formulas in each cell with (0) Compute the Annual Rate of Return for both projects points) Be sure to calculate the Expected Annual Net Income and Average Investment for each project. NOTE: In order to receive full credit, you must use Excel formulas nechce with a (1) Which project would you choose. Write a thoughtful, thorough answer with information to support your answer. (12 point (You will not receive full credit if your answer is not thoughtful, thorough and well supported) Answer parts (a), (b), (c), (d), (e) and in in the cells below, - UPLOAD YOUR COMPLETED SPREADSHEET TO CANVAS TO SUBMIT YOUR ASSIGNMENT IF YOU ARE USING A DIFFERENT SPREADSHEET SOFTWARE OTHER THAN MICROSOFTEXCEL CONVERT THE FILE TO A MICROSOFT EXCEL FORMAT BEFORE UPLOADING OR YOU WILL RECEIVE A ZERO FOR THIS PROJECT (Point) (a) Compute the Cash Payback Period for both projects X-Treme Mountain Bike Cost of Capital Investment Value Net Annual Cash Flow Value Cash Payback Period Hybrid Mountain Bike Value Value REMEMBER Ymust w forms in the celle with a'r you will trerie 2010 (Round to) (12 Points) Hybrid Mountain Bike Value REMEMBER: You must refore in the celle with or you will receive points Select an answer z (b) Compute the Net Present Value for both projects 8 X-Treme Mountain Bike 9 Present Value of Net Cash Flows O Cost of Capital Investment Value "1 Net Present Value 2 Accept or Reject Proposal 3 24 25 (c) Compute the Profitability Index for both projects 276 X-Treme Mountain Bike Project 49 Ready (9 Points) Hybrid Mountain Bike HEMMY f ACC-212 (FALL 2021) Number Styles D (12 P (c) Compute the Profitability Index for both projects 6 Xtreme Mountain Bike 7 Present Value of Net Cash Flows Hybrid Mountain Bike Cost of Capital Investment REMEMBER: You must Value Value *9 Profitability Index we formats in the ? with you will 50 recept 81 32 (d) Compute the Internal Rate of Return for both projects. 39 X-Treme Mountain Bike Hybrid Mountain Bike B4 Cost of Capital Investment Value Value HEME MILIE: You must 85 Net Annual Cash Flow Value Value we formules the che 36 Internal Rate of Return Factor 2 ? with a you will 87 Internal Rate of Return Value receive points Value 88 Accept or Reject Proposal 89 90 91 (e) Compute the Annual Rate of Return for both projects. 92 X-Treme Mountain Bike Hybrid Mountain Bike 93 Expected Annual Net Income Value Value REMEMBE You must 2 w formular in the cells 94 Average Investment ? with a Por you will 95 Annual Rate of Return ? receive points 96 97 98 (Which project would you choose. Write a thoughtful, thorough answer with information to support your answer. 99 100 101 102 103 104 105 106 Project 19 (9 Pol (12 Poln