(Excel) Assume that two investments...(See picture below, please solve in excel and show formulas used, Thank you :) )
A | B | ||
a | Payback | 5.19 | 5.18 |
b | NPV | $14,988.53 | $13,119.84 |
c | IRR | 11.24% | 10.88% |
Workings
Year | A | Cumulative CF | B | Cumulative CF |
0 | -90000 | -90000 | -90000 | -90000 |
1 | 14440 | -75560 | 16000 | -74000 |
2 | 15015 | -60545 | 16000 | -58000 |
3 | 15615 | -44930 | 16000 | -42000 |
4 | 16240 | -28690 | 16000 | -26000 |
5 | 16890 | -11800 | 16000 | -10000 |
6 | 62565 | 50765 | 57000 | 47000 |
Payback = Year in which Cumulative CF is last negative -(Last negative cumulative CF/ CF of next year
(Excel) Assume that two investments...(See picture below, please solve in excel and show formulas used, Thank...
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