1 Practice: Calculating Cressever Rate The crossover rate is the retum at which two altemative projects...

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1 Practice: Calculating Cressever Rate The crossover rate is the retum at which two altemative projects have the same net present value. Usea simple financial model to find the crossover rate for the following projects. All values are in millions. T-0 T=1 S1162 T-6 Project 1-S129490 Project 2$1159.80 S49.80 $1743 S1328 $49.80 S49.80 10 $345 $1162 $1328 11 12 13 Methed l Using Saher en dillerearial NPV 14 Discount Rate Steps 1. Detemine the cells that require fomda 2. Input the formla that produce the same answer as indicated 1. Change Cell BIi and check that the medel produces ferent ecomes 4. Change Ce BI4 back to the same mamber as shown and check that you obtain the same answer as shown. 5. Set Cel BI4e 1% 22.1 Time 15 1 16 Prejecn 17 roject 2 1轉 19 Preject 20 Preject 2 21 Diferential NPV 22 23 Method 2: Using Seher en differential canh lows 24 Discount Rate 25 26 Preject 27 hoject 2 28 Diferential Cash Flew 29 XP of Dfetial CF (31,2940) S1,162.00 SIJ200 31,19.80) S0.00 S0.00 s0.00 S345.00 $1,143.00 $1,142.00 $1,2.00 NPV S00 0 6 Ue Selver to ebtain te same ets as shown. S600 10 Feleving the same steps as abeve 22.1 Time Nate: Only the last solver outcomes wil be shown in each tab Depending en wheter you werk on Methed i er Methed 2 last, that metheds selver outcemes wbe shewn (31,294.80) S1,162.00 SIJ2800 31,190.80) (S135.00) S1,162.00 SL328 00 S49.80 S49 0 S49.0 50.00 $0.00 S0.00 $1.00 S45.00 $1,743.00 (S5.20) (SL 20) (31,112.20) (31,328.00) $1,162.00 $0.00 30 31 1 Practice: Calculating Cressever Rate The crossover rate is the retum at which two altemative projects have the same net present value. Usea simple financial model to find the crossover rate for the following projects. All values are in millions. T-0 T=1 S1162 T-6 Project 1-S129490 Project 2$1159.80 S49.80 $1743 S1328 $49.80 S49.80 10 $345 $1162 $1328 11 12 13 Methed l Using Saher en dillerearial NPV 14 Discount Rate Steps 1. Detemine the cells that require fomda 2. Input the formla that produce the same answer as indicated 1. Change Cell BIi and check that the medel produces ferent ecomes 4. Change Ce BI4 back to the same mamber as shown and check that you obtain the same answer as shown. 5. Set Cel BI4e 1% 22.1 Time 15 1 16 Prejecn 17 roject 2 1轉 19 Preject 20 Preject 2 21 Diferential NPV 22 23 Method 2: Using Seher en differential canh lows 24 Discount Rate 25 26 Preject 27 hoject 2 28 Diferential Cash Flew 29 XP of Dfetial CF (31,2940) S1,162.00 SIJ200 31,19.80) S0.00 S0.00 s0.00 S345.00 $1,143.00 $1,142.00 $1,2.00 NPV S00 0 6 Ue Selver to ebtain te same ets as shown. S600 10 Feleving the same steps as abeve 22.1 Time Nate: Only the last solver outcomes wil be shown in each tab Depending en wheter you werk on Methed i er Methed 2 last, that metheds selver outcemes wbe shewn (31,294.80) S1,162.00 SIJ2800 31,190.80) (S135.00) S1,162.00 SL328 00 S49.80 S49 0 S49.0 50.00 $0.00 S0.00 $1.00 S45.00 $1,743.00 (S5.20) (SL 20) (31,112.20) (31,328.00) $1,162.00 $0.00 30 31

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Cash Flows Project 1 T1 129490 T0 51162 T1 132800 T2 116200 T... View the full answer