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The project involves calculating the NPV of a project for Siesta Inc. at interest rates that vary from 0% to 40%, at 2% intervals. You

The project involves calculating the NPV of a project for Siesta Inc. at interest rates that vary from 0% to 40%, at 2% intervals. You should calculate the NPV of the given cash flows for each value of interest rate (0%, 2%, 2%, 6%, 8%, 40%). Then create a graph with NPV on the y-axis and Interest rate on the x-axis. This project must be completed using an Excel spreadsheet, with formulas and must be turned in through Blackboard.

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Cash Flow Project B-12 Project F-4 $4,250,000 $3,800,000 Cash flow year 0 s o $2,000,000 Cash flow year 1 $1,000,000 Cash flow year 2 $2,000,000 $2,000,000 Cash flow year 3 $1,500,000 s Cash flow year 4 $2,000,000 Cash flow year 5 $2,500,000 ADVANCED PROBLEMS FOR SPREADSHEET APPLICATION 1. NPV profile. Siesta, Incorporated is looking at a project and has the appro- priate cash flow. However, there is much disagreement on the appropriate discount rate to use with the project. Aracely, the CFO, has requested that you provide the NPV at various interest rates between 0% and 40% at 2% inter- vals. That way, when Siesta is able to access the proper discount rate for this project, it will know ifthe project is a go. In addition, graph your NPVresults at each interest rate to show the projects NPV profile. The cash flow for the project is listed here in millions of dollars: Year CF 05 3.44 5.79 9.23 14.68 18.39 21.07 16.42 11.68 2. IRR and MIRR. Using the same cash flows from Problem l for Siesta, Incorporated, confirm that the IRR intersects the horizontal axis at the S0 NPV for the project. Then calculate the project's MIRR at different discount and reinvestment rates. Assume that the discount rate and the reinvestment rate are the same for the MIRR (use 2% and 2%, 4% and 4%, and so on). Find the MIRR for all reinvestment rates from 0% to 30% by increments of 2%

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