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Pleaes provide excel functions to fill missing cells ( ??? ) : Flower Engineering is considering two mutually exclusive investments. The projects' expected net cash
Pleaes provide excel functions to fill missing cells ( ??? ):
Flower Engineering is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: | ||||||||||
Expected Net Cash Flows | ||||||||||
Time | Project A | Project B | ||||||||
0 | ($375) | ($575) | ||||||||
1 | ($300) | $200 | ||||||||
2 | ($200) | $200 | ||||||||
3 | ($100) | $200 | ||||||||
4 | $600 | $200 | ||||||||
5 | $600 | $200 | ||||||||
6 | $975 | $200 | ||||||||
7 | ($200) | $0 | ||||||||
Part 1: | ||||||||||
A) Net Present Value | ||||||||||
Cost of capital = | 12% | Cost of capital = | 18% | |||||||
NPV A = $224.81 | NPV A =$30.84 | (See example 2 at http://office.microsoft.com/en-us/excel-help/npv-HP005209199.aspx) | ||||||||
NPV B = $220.79 | NPV B =$105.53 | |||||||||
B) NPV Profiles and Graph | ||||||||||
WACC | Project A | Project B | ||||||||
0% | ??? | ??? | ||||||||
2% | ??? | ??? | ||||||||
4% | ??? | ??? | ||||||||
6% | ??? | ??? | ||||||||
8% | ??? | ??? | ||||||||
10% | ??? | ??? | ||||||||
12% | ??? | ??? | ||||||||
14% | ??? | ??? | ||||||||
16% | ??? | ??? | ||||||||
18% | ??? | ??? | ||||||||
20% | ??? | ??? | ||||||||
22% | ??? | ??? | ||||||||
24% | ??? | ??? | ||||||||
26% | ??? | ??? | ||||||||
28% | ??? | ??? | ||||||||
30% | ??? | ??? | ||||||||
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