Question: Solve the previous problem using the input data in the file P14_50.xlsx. In the capital budgeting model in Figure 14.40, we supplied the NPV for
In the capital budgeting model in Figure 14.40, we supplied the NPV for each investment. Suppose instead that you are given only the streams of cash inflows from each investment shown in the file S14_49.xlsx. This file also shows the cash requirements and the budget. You can assume that
(1) All cash outflows occur at the beginning of year 1;
(2) All cash inflows occur at the ends of their respective years; and
(3) The company uses a 10% discount rate for calculating its NPVs. Which investments should the company make?
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415-M-S-S-M (126).xlsx
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