Question: Based on the probabilistic analysis, you have come up with three possible scenarios for WACC which could be 10%, or 13%, or 15% Cash Flow
Based on the probabilistic analysis, you have come up with three possible scenarios for WACC which could be 10%, or 13%, or 15%
Cash Flow Estimates are as follows:
Alternative 1:
| Year | Cash Flow |
| 0 | -50,000 |
| 1 | 15,500 |
| 2 | 20,100 |
| 3 | 18,900 |
| 4 | 17,100 |
| 5 | 13,700 |
Alternative 2:
| Year | Cash Flow |
| 0 | -400,000 |
| 1 | 51,300 |
| 2 | 155,000 |
| 3 | 127,800 |
| 4 | 126,900 |
| 5 | 125,100 |
Using the information provided above, please use excel to compute the following:
- Payback Period
- Discounted Payback Period
- NPV
- IRR
- MIRR
- Profitability Index with a formula
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