Question
please respond using excel formulas! A company is reviewing its annual budget in wireless technology. They are considering investments in 3 different technologies to develop
please respond using excel formulas!
A company is reviewing its annual budget in wireless technology. They are considering investments in 3 different technologies to develop wireless communication devices. Consider the following cash flows of the 3 independent projects. The discount rate is 10% and Hanover has $30 million to invest in new projects this year.
What is the NPV, IRR and profitability index for these projects? What would you recommend to the CEO?
In other words, which project(s) provide the most value given a limited capital budget of $30 million?
WACC | 10% | |||
Year | Company A | Company B | Company C | |
0 | -10 | -20 | -30 | |
1 | 25 | 20 | 20 | |
2 | 15 | 50 | 40 | |
3 | 5 | 40 | 100 |
please respond using excel formulas!
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