Question: 1. UC IT considers FIVE new projects. Discount rate is 10%. You need to analyze these projects in Excel. -Calculate the NPV and IRR of

1. UC IT considers FIVE new projects. Discount rate is 10%. You need to analyze these projects in Excel.

-Calculate the NPV and IRR of the second new project based on the information: An initial investment cost is $58,000. The project generates $4,750 in the first year and thereafter it will grow at a constant rate of 6% forever.

-Use an embedded function in Excel to calculate the NPV of the third project if an initial investment cost $1,000,000 and it generates the cash flows, $225,000 in the first year. The cash flows had zero growth and the project only generates cash flows for 30years

-Similar to the third project, the fourth project has an initial investment cost $1,000,000 and it generates the cash flows, $225,000in the first year. However, the cash flows of the project continue to grow at a constant rate of 4% and the project only generates cash flows for 15 years. Find the NPV of the fourth project

-Fifth project has estimated free cash flows of $2,200, $2,450, $2,511, $2,632, $2,760, and $2,900 over next six years. Find the average growth rate using the predicted values. Then assuming the growth persists forever at this rate, find the present value of the terminal value and the total enterprise value using the perpetuity growth method

-The last project has the same free cash flows with the fifth project. However, in the last projection period(year 6), the project has EBITDA of $5,458.24 and assume its EBITDA exit multiple of 15.Then find the present value of the terminal value and the total enterprise value using the exit multiple method.

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