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Start with the partial model in the file Ch 1 2 P 2 5 Build a Model.xlsx . Gardial Fisheries is considering two mutually exclusive
Start with the partial model in the file Ch P Build a Model.xlsx Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Download spreadsheet Ch P Build a Model d df xlsx a If each project's cost of capital is which project should be selected? Round your answers to the nearest cent. NPV Project A : $ NPV Project B : $ should be selected. If the cost of capital is what project is the proper choice? Round your answers to the nearest cent. NPV Project A : $ NPV Project B : $ Screen Shot a c What is each project's IRR? Hint: Using the Excel IRR function, set the guess parameter to be Round your answers to two decimal places. IRR Project A : IRR Project B : The crossover rate is The crossover rate represents the cost of capital at which the two projects have the NPV of $ e What is each project's MIRR at a cost of capital of At Round your answers to two decimal places. f What is the regular payback period for these two projects? Round your answers to two decimal places. Regular payback period Project A : years Regular payback period Project B : years g At a cost of capital of what is the discounted payback period for these two projects? Round your answers to two decimal places. Discounted payback period Project A : years Discounted payback period Project B : years h What is the profitability index for each project if the cost of capital is Round your answers to three decimal places. Profitability index Project A : Profitability index Project B :
Start with the partial model in the file Ch
P
Build a Model.xlsx
Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows:
The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations.
Download spreadsheet Ch
P
Build a Model
d
df
xlsx
a
If each project's cost of capital is
which project should be selected? Round your answers to the nearest cent.
NPV
Project A
: $
NPV
Project B
: $
should be selected.
If the cost of capital is
what project is the proper choice? Round your answers to the nearest cent.
NPV
Project A
: $
NPV
Project B
: $
Screen Shot
a
c
What is each project's IRR?
Hint: Using the Excel IRR function, set the guess parameter to be
Round your answers to two decimal places.
IRR
Project A
:
IRR
Project B
:
The crossover rate is
The crossover rate represents the cost of capital at which the two projects have the NPV of $
e
What is each project's MIRR at a cost of capital of
At
Round your answers to two decimal places.
f
What is the regular payback period for these two projects? Round your answers to two decimal places.
Regular payback period
Project A
:
years
Regular payback period
Project B
:
years
g
At a cost of capital of
what is the discounted payback period for these two projects? Round your answers to two decimal places.
Discounted payback period
Project A
:
years
Discounted payback period
Project B
:
years
h
What is the profitability index for each project if the cost of capital is
Round your answers to three decimal places.
Profitability index
Project A
:
Profitability index
Project B
:
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