Question
In: Finance
IN EXCEL< SHOW THE FORMULAS > Determine the Payback period, NPV and IRR for both project...
IN EXCEL< SHOW THE FORMULAS > Determine the Payback period, NPV and IRR for both project A and B (show work). Which Project would you select and why? Be specific. Project A will require an initial investment of $ 200,000 and Project B will require and initial investment of $ 325,000. The cost of capital for both projects is 12%. The cash inflows for the next 5 years are listed below:
Project A Project B
0 ($200,000) ($325,000)
1 $50,000 $75,000
2 $80,000 (-$50,000)
3 $110,000 $160,000
4 $45,000 $100,000
5 $40,000 $190,000
Solutions
jeff jeffy answered 2 years agoRelated Solutions
. For each project, calculate the NPV, IRR, profitability index (PI) and the payback period. For...
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tool, indicate if the project should be accepted or rejected,
assuming that each project is independent of the others. Important
Note: The venture capital folks have a firm maximum payback
period of four
years.
Project A= Required rate of Return=
16.30%
Project B= R= 12.50%
Project C= R= 15.35%
Project D= R= 17.25%
Expected cash flows for the four...
Calculations of the NPV, IRR and the payback for the project and an analysis of the...
Calculations of the NPV, IRR and the payback for the project and
an analysis of the results. I need the excel formula calculation
and analysis of the questions
You have identified a potential opportunity for WBC, which
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(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...
(Payback
period, NPV, PI, and IRR
calculations)
You are considering a project with an initial cash outlay of
$90,000
and expected free cash flows of
$28,000
at the end of each year for
5
years. The required rate of return for this project is
6
percent.
a. What is the project's payback period?
b. What is the project's
NPV?
c. What is the project's
PI?
d. What is the project's
IRR?
For each project, calculate the NPV, IRR, profitability index (PI) and the payback period. For each...
For each project, calculate the NPV, IRR, profitability index
(PI) and the payback period. For each capital budgeting decision
tool, indicate if the project should be accepted or rejected,
assuming that each project is independent of the others. Important
Note: The venture capital folks have a firm maximum payback
period of four years. Risk free rate = 1.10%, MRP = 9.5%,
Required return = 14.40% Yes excel is fine
Expected cash flows for the four potential projects that Avalon
is...
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considering a project with an initial cash outlay of $80000 and
expected free cash flows of $25000 at the end of each year for 6
years. The required rate of return for this project is 9
percent.
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b. What is the project's NPV?
c. What is the project's PI?
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What is the payback period, NPV, IRR of A. Using this information, should we accept Project...
What is the payback period, NPV, IRR of A. Using this
information, should we accept Project A. Why or why not.
Given the following information answer the question above. The
discount rate is 10 percent.
PROJECT
A
t
Cash Flow
0
(150,000)
1
40,000
2
40,000
3
40,000
4
40,000
5
40,000
ROUND TO NEAREST DOLLAR OR TEN %
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considering a project with an initial cash outlay of $70,000 and
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years. The required rate of return for this project is 8
percent.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
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b. What is the project's NPV?
c. What is the project's PI?
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expected free cash flows of $24,000 at the end of each year for 7
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percent.
a. What is the project's payback period?
3.33 years
b. What is the project's NPV?
____
c. What is the project's PI?
_____
d. What is the project's IRR?
_____
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