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Using the FCF projections below to calculate the NPV of the HomeNet project assuming a cost of capital of: Please show how it is calulated
Using the FCF projections below to calculate the NPV of the HomeNet project assuming a cost of capital of: Please show how it is calulated in Excel. Only way it can be plugged in. | |||||||||
a. | 10% | ||||||||
b. | 12% | ||||||||
c. | 14% | ||||||||
d. | What is the IRR of the project? | ||||||||
Year | 0 | 1 | 2 | 3 | 4 | 5 | |||
FCF | -$16,500 | $2,470 | $6,580 | $10,422 | $12,860 | $3,843 | |||
a. | 10% | ||||||||
NPV ______(Answer) | |||||||||
b. | 12% | ||||||||
NPV________(Answer) | |||||||||
c. | 14% | ||||||||
NPV_____(Answer) | |||||||||
d. | What is the IRR of the project? | ||||||||
IRR _____(Answer) | |||||||||
Please show excel calulations. | |||||||||
Requirements | |||||||||
1. | To calculate the net present value of the project for part (a), you will use the function NPV. In cell D15, by using the function NPV and relative and absolute references, calculate the net present value of the project for part (a) (1 pt.). | ||||||||
2. | To calculate the net present value of the project for part (b) and (c), copy cell D15 and paste it onto cells D19 (1 pt.) and D23 (1 pt.). | ||||||||
3. | To calculate the internal rate of return of the project, you will use the function IRR. In cell D27, by using the function IRR and cell references, calculate the internal rate of return of the project (1 pt.). |
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