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please include excel functions and or steps to solve thank you!! 6-5. A capital investment at San Francisco Marine Electric requires an initial outlay of

please include excel functions and or steps to solve thank you!! image text in transcribed
6-5. A capital investment at San Francisco Marine Electric requires an initial outlay of $1 million, and will generate cash flows of $300,000 at the end of each year for 5 years. The required return is 10%. Find the net present value. Is the investment attractive? 6-7. the shop foreman at Santa Barbara Rig Service proposed a portable service unit requiring an initial outlay of $100,000 and providing the following year-end cash flows. Year Cash Flows 1 $30,000 2 -$50,000 3 $70,000 4 $60,000 5 $50,000 At a 10 percent required return, find the net present value. Is the investment desirable? Explain why this is desirable or undesirable assuming your audience is not trained in finance 6-9. Find the internal rate of return and modified internal rate of return for the above project in 6-7. Interpret these measures for a manager who is not trained in finance. 6-10. find the payback period and present value payback period for the investment in 6-7. Interpret these measures for a manager who is not trained in finance. 6-18. Chico Manufacturing must choose between two methods of producing a new product. The outlays and yeand benefits are as follows: Year Method A Method B 0 -$1,000,000 -$2,000,000 200,000 800,000 250,000 600,000 3 300,000 500,000 4 350.000 400,000 5 400,000 400,000 Assuming the required return is 10 percent, compute the net present value and internal rate of return for each production method. Which production method should be used? Why

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