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This is a one question tote. Please,I would like this question answered with the work shown as well. EXCEL PART: Submission format: Excel File ABC
This is a one question tote. Please,I would like this question answered with the work shown as well.
EXCEL PART: Submission format: Excel File ABC Corpqration has a machine that requires repairs or should be replaced. ABC has evaluated the two options and calculated the cash flows resulting from each qption as follows: Option A: Repair the Machine Year Cash Flow 0 $61,600.00 1 $17,500.00 2 $32,130.00 3 $18,500.00 4 $16,200.00 5 $10,500.00 Option B: Buy a new Machine Year Cash Flow 0 $340,500.00 1 $57,300.00 2 $105,000.00 3 $134,500.00 4 $122,900.00 5 $120,100.00 Capital Budgeting Assignment WRITING PART: Submission format: Word Document You have recently been hired by XYZ corporation and your first assignment is to help them decide which of these two options should be pursued. You would like to apply the capital budgeting and Time Value of Money concepts you have learnt in FIN 301 to analyze the solution and present it to your boss in three days. Conduct the analysis and calculate Payback period for each option, IRR of each option and PI and NPV for each option at four Discount Rates (R) of 9%, 12%, 15%, and 18% Write a memoo your boss, explaining the results of your analysis, your decision and include a table and a chart showing your analysis. A | # 1 2 Requirements: Compute Pay Back for each Option Compute IRR for each Option Pay Back IRR R | # 3 4 5 6 Compute NPV and PI for each option using disccount rates: R NPVA INPVB 9% 12% 15% 18% # 7 8 9 10 PIA 9% 12% 15% 18% 11 12 NPV Profile chart with Ron X Axis and NPV on Y axis (Two lines one each for NPV A and NPV B) A One page professional memo written in MS Word explaining your decision betwwen options A and B Step by Step Solution
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