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Your team is evaluating two mutually exclusive projects. The initial cost of each investment is $50,000. The probability of the cash flows is shown below.
Your team is evaluating two mutually exclusive projects. The initial cost of each investment is $50,000. The probability of the cash flows is shown below. If the project will have a 5 year life and the appropriate cost of capital is 9% calculate the following:
Probability | CF(A) | CF(B) |
10% | (34,000) | (13,500) |
25% | (8,500) | 2,125 |
30% | 17,000 | 19,000 |
25% | 42,500 | 31,875 |
10% | 68,000 | 46,750 |
please show how to get theses in excel with forumlas shown as well
Expected value
NPV
Standard deviation
IRR
MIRR
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