Question: AC220U nit 5 Problems Show your work in Excel using formulas for calculator computation provided in the learning map for Unit 4 as appropriate. Students


AC220U nit 5 Problems Show your work in Excel using formulas for calculator computation provided in the learning map for Unit 4 as appropriate. Students could also use excel formulas given as a Hint. [Select Formulas Financial tab in Excel for a listing of formulas) Q1. What is the net present value of a project with the following cash ows if the required rate of return is 8 percent? [ Hint: Use NP'vr formula in excel} Q2. What is the net present value of a project that has an initial cash ow of $32,400 and the following cash inows? The required rate is 9.2 percent? Would you accept the project? Why? Year 1 Cash inows 1 $13,400 2 $20,100 3 0 4 $10,120 Q3. You are considering the following two mutually exclusive projects. The required rate of return is 12.2 percent for project A and 11.5 percent for projcet B. Which project should be accepted and why? f Hint: Use NP'vr formula in excel} Year Project A Project B 0 [$54,000] [$54,000] 1 25.120 43,000 2 32,000 22,000 3 24,000 12,?00
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