Utilizing cell references and formulas, use the data in the Excel file provided to prepare,

1. Payback period calculation.

2. Net Present Value work the process step-by-step then utilize the NPV formula under the Formulas, Financial, tab.

3. Internal Rate of Return and Modified Internal Rate of Return utilize the IRR and MIRR formulas under the Formulas, Financial, tab in Excel.

3M s considering building a new plant or purchasing an existing company. Cost will be $5,000 million for either option. Discount rate for either project is 12% Utilizing capital budgeting tools provide recommendation to 3M Build New: 6 Year Discount Rate Year Discount Rate 12% 50001000 15002000 4000 5000-4500. 1500 1000,- 500 7 Cash Flows 12% Cash Flows 0 10 Payback 11 Cash Flows 12 Cumulative Cash Flows 13 Payback (in years) 14 15 Net Present Value 16 Year 17 Cash Flows 18 PV of Cash Flows 19 Sum of Inflows 20 NPV 21 Using Excel Financial Formula 5000| 1000| 2000| 4000| 5000 4500 1500 0 500 Cash Flows Cumulative Cash Flows Payback (in years) 1500, Net Present Value Year Cash Flows PV of Sum of Inflows NPV Using Excel Financial Formula 5000 4500 1500 1000 500 000 1000 1500 2000 4000 Cash Flows Internal Rate of Return (IRR) Using Excel Financial Formula 23 Internal Rate of Return (IRR) 24 Using Excel Financial Formula 25 26 28 Modified Internal Rate of Return (MIRR) 29 Year 30 Cash Flows Modified Internal Rate of Return (MIRR) Year Cash Flows 5000-45001-1500| 1000 500. 5000 1000 2000 4000 Reinvestment Rate 5% 5%) MIRR using MIRR Excel Formula 3 MIRR using MIRR Excel Formula