Question 14, 15 and 16

1 Project X Cash Flows 3 Discount rate: 8.3% 5 Year Cash Flow OR 100 000.00 1R 25 000.00 2 R 30 000.00 3 R 40 000.00 4 R 50 000.00 5 R 60 000.00 R 56 770.53 12 NPV Figure 3: Cash flow of a project entered into Excel Question 14 With reference to Figure 3, which one of the following is a correct Excel formula for the calculation of the NPV of the project? (1) = NPV(B3,B7:B11) - B6 (2) - NPV(B3,B7:B11) + B6 (3) = NPV(B3,B7:B11) (4) = NPV(B3, B6:B11) (5) - NPV(B6:311) Question 15 With reference to Figure 3, which one of the following is a correct manual calculation of the profitability index (PI) of the project? 12) 7. 1 (3) SOS + 100000 (4) PROSSE 0000 + 1 (5) 20 0000000000 Question 16 With reference to Figure 3, which one of the following is a correct Excel formula for the calculation of the profitability index (PI) of the project? (1) - B12/B6 (2) - B12/B6 + 1 (3) = PI (B6:B11) (4) - (B12+B6)/-B6 (5) - B12/-36 + 1