Question: Can someone help me answer Chapter 11 problem 1 in Financial Analysis with Microsoft Excel 7th edition? You are considering an investment in two projects,
Can someone help me answer Chapter 11 problem 1 in Financial Analysis with Microsoft Excel 7th edition?
You are considering an investment in two projects, A and B. Both projects will cost $100,000 and the project cash flows are as follows:
| Year | Project A | Project B |
| 1 | 6,250.00 | 45,000.00 |
| 2 | 18,750.00 | 33,750.00 |
| 3 | 35,000.00 | 25,000.00 |
| 4 | 43,750.00 | 18,750.00 |
| 5 | 50,000.00 | 12,500.00 |
a. assume the the WACC is 8%, calculate the payback period, discounted payback period, NPV, PI, IRR, and MIRR. If the projects are mutually exclusive, which should be selected?
b. create an NPV profile chart for projects A and B. What is the exact crossover rate for these two projects?
Can you explain how you found these answers in excel.
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