Problem 86 You have been offered a unique investment opportunity. If you invest $10.000 today, you will receive $500 one year from now. $1.500 two years from now and $10.000 ten years from now Complete the steps belowing cell references to vendar previous calculations in some cases a simple cell reference is all you need to composte a formulacross a row or down a common absolute cell reference aramidal n e may be preferred Ifa specific Excel function is to be on the directions the of that function. Do not type in numerical data into a cell or function. Inna make a reference to the cell in which the data is found Make your computations only in the cells highlighted below in all case s sochen directed use the earliest appearance of the date in your formules wally the Giver Data section. a. What is the NPV of the opportunity if the cost of capital is 6% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2% per year? Should you take it now? $ 10.000 Initial investment Cash flow year 1 Cash flow year 2 Cash flow year 10 $ 1.500 a. What is the NPV of the opportunity if the cost of capital is 6% per year? Should you take the opportunity? Cost of capital NPV Take opportunity (Yes/Nal b. What is the NPV of the opportunity if the cost of capital is 25 per year? Should you take it now? Cost of capital NPV Take opportunity Yes No equirements In cell 017, by using cell references, write an expression to calculate the NPV of the investment opportunity (1 pt.) In cell D18type Ves or No depending on whether you would take the opportunity or not (pl.). In cell DZL by using cell references, write an expression to calculate the NPV of the investment opportunity (1 pt.). In cell D25, type Yes or No depending on whether you would take the opportunity or not (1 pt.). Problem 330 You are considering the projects below and can take only one Your cost of capitals 119 Complete the steps belowing cell references to vender pesca c o n simple cell reference is all you need to cop e word com an absolute cell reference or embed cell reference may be preferred to speci el function is to be there will specify the other function Doo typen mercat acelor com m ence to the in which the dais found your company in the r ichieden als ochwered use the cost peramce of the data in your forme, say the Gym a. What is the NPV of each project at your cost of capital? b. What is the IRR of each p et? At what cost of all are you indifferent between the two projects? d. What should you do? Project A Project S 100 S S S 40 30 20 Cost of capital 116 a. What is the NPV of each project at your cost of capital? NPV project NPV project B b. What is the IRR of each project? IRR project IRR project c. At what cost of capital are you indifferent between the two projects? difference d. What should you do? You should invest in project Requirements 1 In cell DIR by using the function and cell references calculate the NPV of project Alpe). 2 In cells, by using the NPV function and cell reference calculate the NPV of project (1 pt) 3 In cel by sing cell references calcethe IRRO A pt # Incl 24 by using colle c te the IRR of project (1 p.) 5 in cel mange by using cell references calculate the difference between the C ows or And project (1 p.) 6 In cell 31. by using celeros, calculate the IRR of the difference in cash flows pt. 7 in cell E3S.type A or B depending on whether you should take project A or project pt.) (1