Homework Answers
Hello,
Put the Figures in excel in the formula listed below
NPV = Pv of inflow - Outflow
MIRR = (values, finance_ rate, reinvest_ rate)
At year 2 cash flow will be "0" because at end the of 2 year
additional 10 million in invested in the project
(all figures in millions)
WACC - 8%
| Year | Cashflow | Pv of Cashflow |
| 0 | -40 | -40 |
| 1 | 8 | $7.41 |
| 2 | 0 | $0.00 |
| 3 | 16 | $12.70 |
| 4 | 19 | $13.97 |
| 5 | 18 | $12.25 |
| NPV | $6.32 | |
| MIRR | 11% |
Future value of return of cashflow for the end of 5 year
| Year | Cashflow | FV of return |
| 0 | -40 | |
| 1 | 8 | $10.88 |
| 2 | 0 | $0.00 |
| 3 | 16 | $18.66 |
| 4 | 19 | $20.52 |
| 5 | 18 | $18.00 |
I hope this clear your doubt.
Feel free to comment if you still have any query or need something else. I'll help asap.
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3. Understanding the IRR and NPV Aa Aa The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Green Caterpillar Garden Supplies Inc. 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...
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USE SOLVER IN EXCEL TO ANSWER PROBLEM. Show step by step how
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Show all work and highlight final answer. DO NOT answer
if you cannot answer them all.
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