Question

how to do #8 in excel

C Get Homework Help With Che S 0133020312.pdf Bb Chapter 10 Capital Budgeting C Solved: (IRR calculation) Detem X University

0 0
Add a comment Improve this question Transcribed image text
Answer #1

NPV is given by:

Σ Rt/(1 i)ttvaries from 1 to n NPV where Rt Cash flow netted (Inflow - Outflow) during the period t i Discount rate t numbe

A В C D 13 Cashflows -$50,00,000 $10,00,000 $10,00,000 $10,00,000 $10,00,000 $10,00,000 $10,00,000 $10,00,000 $10,00,000 14 Y

XV fx NPV(A28,$B$16:$B$23)+$B$15 SUM A В E 13 Cashflows -$50,00,000 $10,00,000 $10,00,000 $10,00,000 14 Year 15 16 1 17 2 18

fx B28 A B 13 Cashflows 14 Year -$50,00,000 $10,00,000 $10,00,000 $10,00,000 15 0 16 17 2 18 3 $10,00,000 $10,00,000 $10,00,0

Another method

X V fx D7/(1+$C$2)^D4 SUM A E Project A Discount Rate (r) 1 9% 2 3 0 4 years Cash-Outflows Cash-Inflows Net Cashflows (Inflow

X V fx -SUM(C8:K8) SUM А В Е F G Н K Project A Discount Rate (r) 1 9% 2 3 0 1 2 4 5 7 8 years Cash-Outflows 5 50,00,000 Cash-

fx =SUM (C8:K8) C10 А В D E Н К Project A Discount Rate (r) 1 9% 2 3 4 2 3 4 5 6 7 years Cash-Outflows 5 50,00,000 Cash-Inflo

Discount Rate = 11%

А В D F G н K Project A 1 Discount Rate (r) 11% 2 3 0 2 3 4 5 8 years Cash-Outflows 5 50,00,000 Cash-Inflows Net Cashflows (I

fx =SUM (C8:K8) C10 А В D E Н K Project A Discount Rate (r) 1 11% 2 3 4 2 3 4 5 6 7 8 years Cash-Outflows 5 50,00,000 Cash-In

Discount Rate = 13%

В D F G Н K Project A Discount Rate (r 1 13% 2 3 years Cash-Outflows Cash-Inflows Net Cashflows (Inflow 0 2 3 4 5 5 50,00,000

Discount Rate = 15%

fx -Сб-C5 C7 A D E G Н К Project A Discount Rate (r) 1 15% 2 3 years 4 0 1 3 4 5 6 7 8 Cash-Outflows 50,00,000 5 Cash-Inflows

Add a comment
Know the answer?
Add Answer to:
how to do #8 in excel C Get Homework Help With Che S 0133020312.pdf Bb Chapter...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • how to do #13 in excel 0133020312.pdf X C Get Homework Help With Chex University of...

    how to do #13 in excel 0133020312.pdf X C Get Homework Help With Chex University of the Virgin Islands x Bb Chapter 10 Capital Budgeting C Solved: (IRR calculation) Deter x + - 0 X → blackboard.uvi.edu/bbcswebdav/pid-416370-dt-content-rid-14910461_1/courses/FIN301_FallSemester 2019_1_87473/Foundations-of-Finance-8th-Edition.pdf 0133020312.pdf 365/549 10-13. (NPV calculation) Calculate the NPV given the following cash flows if the appropriate re- quired rate of return is 10%. YEAR CASH FLOWS -$60,000 20,000 20,000 10,000 10,000 30,000 30,000 Should the project be accepted? 10-14. (NPV calculation) Calculate...

  • udicates problems in Excel Study Problems All Study Problems are available in MyLab Finance. The X...

    udicates problems in Excel Study Problems All Study Problems are available in MyLab Finance. The X icon indicates problems Mylab format available in MyLab Finance. LO2 10-1. (Payback Period) What is the payback period for the following set of cash flowe YEAR CASH FLOWS --- $11,300 3,400 4,300 3,600 4,500 3,500 x 10-2. (IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $10,000 resulting in a single free cash flow of $17,182 after 8 years...

  • (​NPV, ​PI, and IRR calculations​) You are considering two independent​ projects, project A and project B....

    (​NPV, ​PI, and IRR calculations​) You are considering two independent​ projects, project A and project B. The initial cash outlay associated with project A is ​$55,000​, and the initial cash outlay associated with project B is ​$75,000. The required rate of return on both projects is 10 percent. The expected annual free cash inflows from each project are in the popup​ window:    PROJECT A   PROJECT B Initial Outlay   -55,000   -75,000 Inflow year 1   16,000   17,000 Inflow year 2   16,000  ...

  • (NPV, PI, and IRR calculations) You are considering two independent projects, project A and project B....

    (NPV, PI, and IRR calculations) You are considering two independent projects, project A and project B. The initial cash outlay associated with project A is $50,000 and the initial cash outlay associated with project B is $70,000. The required rate of return on both projects is 11 percent. The expected annual free cash inflows from each project are on the table below. Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted. Project...

  • (NPV, PI, and IRR calculations) You are considering two independent projects, project A and project B....

    (NPV, PI, and IRR calculations) You are considering two independent projects, project A and project B. The initial cash outlay associated with project A is $50,000 and the initial cash outlay associated with project B is $70,000. The required rate of return on both projects is 11 percent. The expected annual free cash inflows from each project are on the table below. Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted. Project...

  • ​(NPV with varying required rates of return​) Gubanich Sportswear is considering building a new factory to...

    ​(NPV with varying required rates of return​) Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of ​$4,000,000 and would generate annual free cash inflows of ​$1,200,000 per year for 7 years. Calculate the​ project's NPV ​given: a. A required rate of return of 9 percent b. A required rate of return of 11 percent c. A required rate of return of 13 percent d. A required rate...

  • (NPV with varying required rates of return) Gubanich Sportswear is considering building a new factory to produce alumin...

    (NPV with varying required rates of return) Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $6,000,000 and would generate annual free cash inflows of $1,200,000 per year for 8 years. Calculate the project's NPV given: a. A required rate of return of 8 percent b. A required rate of return of 12 percent c. A required rate of return of 13 percent d. A required rate...

  • Big​ Steve's, a maker of swizzle​ sticks, is considering the purchase of a new plastic stamping m...

    Big​ Steve's, a maker of swizzle​ sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of ​$ 110,000 and will generate free cash inflows of $ 19,000per year for 13 years. a. If the required rate of return is 8 ​percent, what is the​ project's NPV​? b. If the required rate of return is 18 ​percent, what is the​ project's NPV​? c. Would the project be accepted under part ​(a​) or ​(b​)?...

  • (NPV with varying required rates of return​) Gubanich Sportswear is considering building a new factory to...

    (NPV with varying required rates of return​) Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of ​$5,000,000 and would generate annual free cash inflows of ​$1,100,000 per year for 8 years. Calculate the​ project's NPV ​given: a. A required rate of return of 7 percent b. A required rate of return of 11 percent c. A required rate of return of 13 percent d. A required rate...

  • Test: FIN 301 Exam x > 0133020312.pdf X ® FIN 432 - Investment A X G Get Homework Help W X G Using the formula f...

    Test: FIN 301 Exam x > 0133020312.pdf X ® FIN 432 - Investment A X G Get Homework Help W X G Using the formula force "webapps/assessment/take/launch.jsp?course assessment_id=_17709_18_course_id=_25356_1&.content_id=_431107_1&step=null Price today(P.) = Par/(required rate of return on the stock - expected growth rate in dividends) QUESTION 28 Using the formula for determining the value of a constant growth stock, and D=$1.00.r = 10% and g = 5%, the price of the stock today $15 $21 $25 QUESTION 29 If the dividend...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT