Question: Also work the following problems Problem a) Use Excel to find the rate of return for the following cash flow. (5 points) 12.000 0 1

Also work the following problems Problem a) Use Excel to find the rate of return for the following cash flow. (5 points) 12.000 0 1 2 3 4 5 6 7 8 Year 100 100 100 300 300 300 300 4000 Problem b) (Multiple Rate of Return Problem, 25 points) Sparky Inc. is considering an investment in the following project. The net cash flow associated with one phase of the production operation is as shown. i) Determine the possible rate of return values (i*s) according to the Net Cash Flow Rule of Signs. ii) Determine the possible rate of return values (i*s) according to the Accumulated Cash-Flow Sign Test. iii) Use Excel to determine the i* value(s). Use the NPW relation to construct the graph (NPW for across possible i*s). Also use the IRR function in Excel to display the value(s). Print out the Excel portion (well labeled) to include with your hard copy of HMWK 17. Net Cash Flow, $ -40,000 32,000 18,000 -2000 -1000
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