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Write =IF() statements to give your decision to accept or reject the project under each criteria and give the Final overall decision under each scenario
- Write =IF() statements to give your decision to accept or reject the project under each criteria and give the Final overall decision under each scenario (of WACC) considering all above six options
- calculate the crossover rate for the two NPV profiles
- Calculate the NPV profiles for the two alternatives by assuming a range of WACC starting with 0% and going up to 25% (increments of 5%)
- Make one graph of these two NPV profiles. Label your graph with a title, X and Y axis, IRR, and cross over rate (clearly marked and shown) If you cannot complete all bullets that is okay! Thank you in advance. Please see info below for reference.
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Year Cash Flows Alternative 1 Alternative 2 0 ($50,000) ($400,000) 1 $15,500 $51,300 2 $20,100 $155,000 3 $18,900 $127,800 4 $17,100 $126,900 5 $13,700 $125,100 -
At 10% WACC Alternative 1 Alternative 2 Payback Period 2.76190 3.51931 Discounted Payback Period 3.43646 4.54806 NPV $15,088.48 $35,105.23 IRR 21.44% 13.10% MIRR 15.96% 11.87% Profitability Index $1.30 $1.09 At 13% WACC Alternative 1 Alternative 2 Payback Period 2.76190 3.51931 Discounted Payback Period 3.70971 4.98399 NPV $10,480.27 $1,087.19 IRR 21.44% 13.10% MIRR 17.38% 13.06% Profitability Index $1.21 $1.00 At 15% WACC Alternative 1 Alternative 2 Payback Period 2.76190 3.51931 Discounted Payback Period 3.90991 5.31201 NPV $7,692.11 ($19,406.16) IRR 21.44% 13.10% MIRR 18.34% 13.86% Profitability Index $ 1.15 $0.95
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