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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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