Question

please help with these calculations for this finance mindtap problem and show excel computations as well as the output.

the mc answers are:
i. a) $11,618,551 b) $11,474,565 c) $13,329,689, d) $11,938,112
ii) a) $2,166,323 b) $1,715,006 c) $1,805,269     d) $1,624,742.
iii) a) increase b) stay the same c) decrease

Ch 11: Assignment- The Basics of Capital Budgeting Last Tuesday, Green Caterpillar Garden Supplies Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Zeta is 13.2 %, but he can't recall how much Green Caterpillar originally invested in the project nor the project's net present value (NPV). However, he found a note that detailed the annual net cash flows expected to be generated by Project Zeta. They are: Year Cash Flow Year 1 $2,400,000 Year 2 $4,500,000 Year 3 $4,500,000 Year 4 $4,500,000 The CFO has asked you to compute Project Zeta's initial investment using the information currently available to you. He has offered the following suggestions and observations: .A project's IRR represents the return the project would generate when its NPV is zero or the discounted value of its cash inflows equals the discounted value of its cash outflows-when the cash flows are discounted using the project's IRR. . The level of risk exhibited by Project Zeta is the same as that exhibited by the company's average project, which means that Project Zeta's net cash flows can be discounted using Green Caterpillar's 7 % WACC and its NPV is (rounded to the nearest whc Given the data and hints, Project Zeta's initial investment is dollar). A project's IRR will if the project's cash inflows decrease, and everything else is unaffected.

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

projects (Autosaved) (Autosaved) (Autosaved) - Microsoft Excel (Product Activation Failed) Review File Home Insert Page Layout Formulas Data View Add-Ins E AutoSum Cut A A Wrap Text Calibri 11 General ECopy Fill Merge & Center Paste +.0 .00 .00 0 Conditional Format Cell Insert Delete Format Sort & Find & Filter Select BIU % Format Painter Clear Formatting as Table Styles Clipboard Font Alignment Number Styles Cells Editing f& EVERYTHING ELSE IS UNAFFECTED OS195 ON OL OM 00 OP OQ OR OS OT OU OV OW OX 178 179 PV FACTOR 180 AT 13.2% CFAT PV OF CFAT IRR IS THE RATE WHERE NPV = 0 OR IN OTHER WORDS, INVESTMENT = PV OF CASHFLOWS year A*B 181 A SO INVESTMENT = 11474565 182 1 2400000 0.8834 2120141.34 183 2 4500000 0.7804 3511718.21 184 4500000 0.6894 3102224.57 185 4 4500000 0.6090 2740481.07 186 PV 11474565 187 188 PV FACTOR ANSWERS AT 7% 189 CFAT PV OF CFAT INITIAL INVESTMENT 11474565 year 190 A*B A В NPV 1805269 0 -11474565 1 -11474565.20 191 192 0.9346 2242990.65 1 2400000 0.8734 193 2 4500000 3930474.28 A PROJECT'S IRR WILL DECREASE, IF PROJECT'S CASH FLOW DECREASES & EVERYTHING ELSE IS UNAFFECTED 4500000 0.8163 194 3 3673340.45 4500000 195 4 0.7629 3433028.45 1805268.64 196 NPV 197 IRRnpvbeta erences: SM219 STO invest, EAA NPV RATION PBP ARR MI-np-ir REPLACEMENT S HPR GMAM EAC MACRS RELEVANT BETA LEVERED REPLACEMENT BOND OPTION TO WAIT Rea + 120% WA 11:49 ENG 04-11-2019