at 2-Excel ERT PAGE LAYOUT FORMULAS DATA RIVEW VW the following problems using cither the fnancial functions in Excel or the Present Value and Future Value formiolas as If you wish to have S60,000 in 8 years, how much do you need to deposit in the bank today if the account pays an interest rate of 9%? Annwer 2) What will $110,000 grow to be in 9 years if it is invested today at 116 Answer You would like to have S200 000 in a college fund in 15 years. How much do you need today if you expect to earn 12% while you are nswer 41 F3 8 INSERI PAGE LAYOUT FORMURLAS DATA REVEW VEW [x V PV.FV.,..rn You bave been offered $3,000 in 4 years for providing $2,000 today into a business venture with a friend. If interest rates are 10%, is (4) this a good investment for you? Anewer (5) what will$82,000growto bem 11vearsift str vestedtodavat8%and the interest s compounde monthly? at How many vears will i take for $136, 00 to grow to S468.00 ift s mvested in an account wth an annual mterest rate of 8% Answer (6) Week 2 Part1 41 INSERT PAGE LAYOUT FORMULAS DATA EVW VIEW [x PV.FV.1/(1.4m years? At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 Answer Week 2 Part 1 Week2- Part 2 412 Week Two Financial Exercises Part 2 Complete the following problems: (1) Cal late the Net Present Vale NPV of the following cash flow stream ifthe required rate is 12%; Year Cash Flow (230,000) 60,000 60,000 60,000 60,000 60,000 this a or not (2) Calculate the Net Present Value (NPV) of the folowing cash flow projections based on a required rate of 10. Year Cash Flow (120,000) 35,000 47,500 55,00062,000 Is this a good project for the business to accept? Explain why or why not A company needs to decide if it will move forward with two new products that it is evahuating. The two initiatives ha ) following cash Bow projections Week 2 : Part 1 Week 2- Part 2 419 HOME INSERT PAGE LAYOUT FOR A company needs to decile if it will move forward with two new products that it is evaluating. The two initiatives have the frollewing cash flow projections Cash Flow 800000 220,000 2,000 292,000 317000 Year Cash Flow 650,000 175,000 175,000 175,000 175,000 175,000 Based on the risk of each project, the company has a required rate of return of i 1% for Pro ect A and 1 1.5% for Proyect B. The company has a $1.5 ailion budget to spend on new projects for the year. Should the company move forward with one, both, or Anwer (4) Calculate the internal rate of return (TRR) of the following cash flows Cash Flow Answer "(5) if a company has a required rate of return of 15%, should the flowing project be accepted based on these expected cash flows below? Week 2: Part 1 Week 2- Part 2 419 Part 2- Excel HOME INSERT PAGE LAYOUT FORMILAS DATA REVIEWVIEW A B (5) lfa o pany has a repred rate of return of 15%, should the following proyect be accepted based on these expected cash flows belo Year Cash Flow 274000) 68,000 76500 78,000 82,500 77,000 Please explain why or wby not the Anseer should move forward with this endeavor (6) Based on the investor expectations of eaming at least 12% should this projected below be completed? Cash Flow(133,000) 37000 42,750 44000 46,500 82,500 77000 Please explain wby or why not the company should move forward wvith this endeavor Week 2: Part1 Week 2 Part 2 410