Time 0 1 2 3 4 5 Cash flows -800 80 100 300 500 500 Financing...



Time	0	1	2	3	4	5
Cash flows	-800	80	100	300	500	500

Financing rate=15%
Reinvestment rate=20%

a) Write the excel command to calculate the NPV:
b) Write the NPV numerical value:

c) Write the excel command to calculate the IRR:
d) Write the IRR numerical value:

e) Write the excel command to calculate the MIRR:
f) Write the MIRR numerical value:

h) Write the excel command to calculate the PI:
i) Write the PI numerical value:

Expert Solution


N	Time	0	1	2	3	4	5
A	Cash flows	-800	80	100	300	500	500
ICF	Initial Cash outflow	800
i	Financing rate=15%=0.15
r	Reinvestment rate=20%							SUM
PV=A/((1+i)^N)	Present Value of Cash Flow	-800	69.5652174	75.61437	197.2549	285.8766	248.5884	76.90
	NPV=Sum of PVs	$76.90
	a) Write the excel command to calculate the NPV:		NPV(15%,H6:M6)	Note NPV Command of excel gives a value of $66.87 .The value calculated above is correct					$66.87
	b) Write the NPV numerical value:	$76.90

	c) Write the excel command to calculate the IRR:		IRR(H6:M6)
	d) Write the IRR numerical value:	17.94%

	e) Write the excel command to calculate the MIRR:		MIRR(H6:M6,15%,20%)
	f) Write the MIRR numerical value:	18.52%

PI=(NPV+ICF)/ICF	h) Write the excel command to calculate the PI:		(76.90+800)/800
	i) Write the PI numerical value:	1.09612431

jeff jeffy answered 2 years ago

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