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:

  1. Payback Period
  2. Discounted Payback Period
  3. NPV
  4. IRR
  5. MIRR
  6. Profitability Index with a formula

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