1. Solve the following questions in excel using the skills from class.

1. Lindner is considering an investment with an initial cost of $122,400 and salvage value of 63,600 with the following cash flows over the next 6 years:

Year	Cash flow
1	$28,750
2	$19,500
3	$44,100
4	$27,900
5	$15,850
6	$13,050

The discount rate is 14.8%. Find the NPV and IRR, what is the decision and what was the criteria for each rule?

2. You want to analyze the impact of a new project that will cause its cash flows to increase 12,000 over last years, and continue to grow at a constant rate of 7% per year for the foreseeable future. The discount rate is 13.5%. Analyze the project in three ways:
   1. Calculate the NPV and IRR of this project based on an initial investment cost of $97,000 and the change in cash flows each year, assuming the growth continues forever.
   2. Find the NPV and IRR of this project if the project only generates cash flows for 17 years.
   3. Use an embedded function in Excel to calculate the NPV of the project if the cash flows had zero growth, and the project only generates cash flows for 35 years.

UC Inc. has predicted unlevered free cash flows (FCF) of $19,800, $21,540, $25,300, and $28,900 for the next 4 years. Find the average growth rate using the predicted values. Then, assuming the growth rate persists forever at this rate, find the present value of the terminal value. Finally, find the total enterprise value. The discount rate is 18%.