Question

please answer the question marked page 2 on the first sheet usuinh the information, not the questions, provided in the past sheet.

SPECIFIC INPUT: Page 1: Use Investment, cash-flows and discount rate as presented in the Chapter 9. Prepare the following: 1. Payback analysis 2. NPV analysis 3. IRR analysis Page 2: A. Change the cash-flows as follows: Investment $ 600,000,000 Year 5 $ 195,000,000 Year 1 $ 79,000,000 Year 6 $ 145,000,000 Year 2 $ 95,000,000 Year 7 $135,000,000 Year 3 $ 120,000,000 Year 8 $112,000,000 Year 4 $ 163,000,000 Year 9 ($ 55,000,000) Salvage value B. Answer the same questions as required in Page 1, above. Page 3: A. Use the same data from Page 2 above. Change the discount rate to 12.5%. B. Answer the same questions from the previous pages.

Answer 1

Payback	4.73
NPV	5,850,472.84
IRR	12.26%

Workings

Payback = Year in which Cumulative CF is last negative -(Last negative cumulative CF/ CF of next year

Year	Cash flows	Cumulative CF
0	(600,000,000.00)	(600,000,000.00)
1	79,000,000.00	(521,000,000.00)
2	95,000,000.00	(426,000,000.00)
3	120,000,000.00	(306,000,000.00)
4	163,000,000.00	(143,000,000.00)
5	195,000,000.00	52,000,000.00
6	145,000,000.00	197,000,000.00
7	135,000,000.00	332,000,000.00
8	112,000,000.00	444,000,000.00
9	(55,000,000.00)	389,000,000.00

AutoSave Of Book1- Excel Sign in O Tell me what you want to do Comments Share Help File Home Formulas Review View Insert Draw Page Layout Data Σ X Insert A A Calibri General 11 Delete Sort & Find & Filter Select Conditional Format as Cell Paste A B IU Format T T Formatting Table Styles Clipboard Font Alignment Number Styles Cells Editing г. X B1 Year B A C D E G H Year Cash flows Cumulative CF Payback =B6-D6/C7 1 -600000000 =C2 =NPV(12%,C3:C11)+C2 =IRR(C2:C11) 2 NPV 1 79000000 D2+C3 IRR D3+C4 4 2 95000000 5 120000000 =D4+C5 6 4 163000000 =D5+C6 7 195000000 =D6+C7 8 6 145000000 =D7+C8 9 7 135000000 =D8+ C9 10 8 112000000 =D9+C10 11 -55000000 -D10+C11 12 13 14 15 16 17 Sheet2 Sheet3 Sheet1 Sheet4 Sheet5 Sheet6 Sheet7 Sheet8 Sheet9 +100 % Ready w e ха P3 ENG 3:20 PM