please provide answer to questions showing excel. im super lost.

1.Innovation Company is thinking about marketing a new software product. Up front costs to market and develop the product are $ 4.91$4.91

million. The product is expected to generate profits of $ 1.12$1.12

million per year for ten years. The company will have to provide product support expected to cost $ 98 comma 000$98,000

per year in perpetuity. Assume all profits and expenses occur at the end of the year.

a. What is the NPV of this investment if the cost of capital is 5.8 %5.8%?

Should the firm undertake the project? Repeat the analysis for discount rates of 1.4 %1.4%

and 15.8 %15.8%,

respectively.

b. What is the IRR of this investment opportunity?

c. What does the IRR rule indicate about this investment?

2.You have just been offered a contract worth $ 1.01$1.01

million per year for 66

years. However, to take the contract, you will need to purchase some new equipment. Your discount rate for this project is 11.5 %11.5%.

You are still negotiating the purchase price of the equipment. What is the most you can pay for the equipment and still have a positive NPV?

3.You are choosing between two projects. The cash flows for the projects are given in the following table ($ million):

Project

Year 0

Year 1

Year 2

Year 3

Year 4

A

negative $ 51$51

$ 25$25

$ 19$19

$ 22$22

$ 13$13

B

negative $ 100$100

$ 20$20

$ 42$42

$ 50$50

$ 60$60

a. What are the IRRs of the two projects?

b. If your discount rate is 4.5 %4.5%,

what are the NPVs

of the two projects?

c. Why do IRR and NPV rank the two projects differently?

a. What are the IRRs of the two projects?

The IRR for project A is nothing %.

(Round to one decimal place.)

4.You need a particular piece of equipment for your production process. An equipment-leasing company has offered to lease you the equipment for $ 9 comma 900$9,900

per year if you sign a guaranteed 55-year

lease (the lease is paid at the end of each year). The company would also maintain the equipment for you as part of the lease. Alternatively, you could buy and maintain the equipment yourself. The cash flows from doing so are listed below (the equipment has an economic life of 55

years). If your discount rate is 6.9 %6.9%,

what should you do?

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

negative $ 40 comma 600$40,600

negative $ 2 comma 200$2,200

negative $ 2 comma 200$2,200

negative $ 2 comma 200$2,200

negative $ 2 comma 200$2,200

negative $ 2 comma 200$2,200

The net present value of the leasing alternative is $nothing .

(Round to the nearest dollar.)

5.Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts:

Contract

NPV

Use of Facility

A

$ 2.04$2.04

million

100 %100%

B

$ 0.97$0.97

million

60 %60%

C

$ 1.49$1.49

million

40 %40%

a. What are the profitability indexes of the projects?

b. What should Fabulous Fabricators do?

a. What are the profitability indexes of the projects?

The profitability index for contract A is nothing .

(Round to two decimal places.)