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 1 year ago

There are two projects with the following cash flows. Years: 0 1 2 3 4 5...

There are two projects with the following cash flows. Years: 0 1 2 3 4 5 Project 1: -210 125 125 175 175 -400 Project 2: 300 -95 -75 -125 -400 600 a. What are the NPVs of these two projects if market interest rate is 3%? b. With the interest rate of 6%, please modified these two projects to let them have only one IRR for each one of them. (That means the sign of cash flows of each project...

Considering the following projects. Project Year 0 1 2 3 4 A Cash flows -$100...

Considering the following projects. Project Year 0 1 2 3 4 A Cash flows -$100 $35 $35 $35 $35 B Cash flows -$100 $60 $50 $40 $30 If project B is risker than project A, in which project A has WACC = 6.00% while project B has WACC = 8.50%. If these two projects are mutually exclusive, which project should the company accept? Compute: NPV, IRR, MIRR, payback, and discounted payback period for each project. # please with details.

Consider cash flows for projects A and B Year: 0, 1, 2, 3, 4, 5 Project...

Consider cash flows for projects A and B Year: 0, 1, 2, 3, 4, 5 Project A: -$1000, 375, 375, 375, 375,-100 Project B: -$1000, 900, 700, 500, -200, 200 The cost of capital for both projects is 10% 1. Find the NPV and MIRR of projects A and B. If project A and B are mutually exclusive. 2. Find the crossover rate for projects A and B. 3. What is the profitability index for projects A and B? How...

Use these cash flows to answer the following questions: Year 0 1 2 3 4 5...

Use these cash flows to answer the following questions: Year 0 1 2 3 4 5 6 A (4,000) 800 1,400 1,300 1,200 1,100 1,000 B (2,000) 700 1,300 1,200 0 0 0 a. Calculate the NPV for projects A and B using a 20 percent discount rate (write the calculate keys that you use to get the answer). b Calculate the Equivalent Annual Annuity (EAA) for projects A and B using a 20 percent discount rate (write the calculate...

These are the cash flows. Year 0 1 2 3 4 5 6 Revenue 3.2000 4.0000...

These are the cash flows. Year 0 1 2 3 4 5 6 Revenue 3.2000 4.0000 5.6000 5.6000 4.0000 2.4000 Expenses .7200 .9000 1.2600 1.2600 .9000 .5400 Depreciation .9500 .9500 .9500 .9500 .9500 .9500 Pretax profit 1.5300 2.1500 3.3900 3.3900 2.1500 .9100 Tax .5355 .7525 1.1865 1.1865 .7525 .3185 Net income .9945 1.3975 2.2035 2.2035 1.3975 .5915 OCF 1.9445 2.3475 3.1535 3.1535 2.3475 1.5415 Cash flow investment −5.7000 .4362 Change in NWC −.3200 −.0800 −.1600 0.0000 .1600 .1600 .2400...

Consider the following cash flows: Year 0 1 2 3 4 5 6 Cash Flow -$10,000...

Consider the following cash flows: Year 0 1 2 3 4 5 6 Cash Flow -$10,000 $2,200 $3,300 $2,500 $2,500 $2,300 $2,100 A. Payback The company requires all projects to payback within 3 years. Calculate the payback period. Should it be accepted or rejected? B. Discounted Payback Calculate the discounted payback using a discount rate of 10%. Should it be accepted or rejected? C. IRR Calculate the IRR for this project. Should it be accepted or rejected? D. NPV Calculate...

Year Cash Flow 0 $0 1 $250 2 $400 3 $500 4 $600 5 $600 What...

Year Cash Flow 0 $0 1 $250 2 $400 3 $500 4 $600 5 $600 What is the present (Year 0) value if the opportunity cost (discount) rate is 10 percent? Add an outflow (or cost) of $1,000 at Year 0. What is the present value (or net present value) of the stream?

0 1 2 3 4 5 6 7 Project A -$300 -$387 -$193 -$100 $600 $600...

0 1 2 3 4 5 6 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$400 $134 $134 $134 $134 $134 $134 $0 Project Delta #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Crossover Rate = IRRΔ #N/A Project MIRR Calculations at WACC = 18% WACC 18.00% MIRRA #N/A MIRRB #N/A

Period Forecast 1 200 2 500 3 300 4 400 5 200 6 200 Regular time:...

Period Forecast 1 200 2 500 3 300 4 400 5 200 6 200 Regular time: $20 per unit (maximum of 280 units per period) Overtime: $30 per unit (maximum of 40 units per period) Subcontracting: Not available Beginning inventory: None Carrying cost: $10 per unit per period Backorder cost: $50 per unit per period What is the total regular time cost for the plan which minimizes total cost? Round answer to nearest dollar. Do not use a...

exampleInput.txt 1 2 3 0 2 3 4 0 1 3 5 0 1 2 6...

exampleInput.txt 1 2 3 0 2 3 4 0 1 3 5 0 1 2 6 1 5 6 8 2 4 6 7 3 4 5 9 10 5 8 9 4 7 9 6 7 8 6 How can I detect when 'cin' starts reading from a new line. The amount of numbers in each row is unknown. I need them in type 'int' to use the data.

Question