Case 1: Evaluate a project that has a startup cost of $10,000, a projected cash flow of $3,000 at the end of the first year, $4,200 the second year, and $6,800 in the third and final year. Use 10% as the required rate/cost of capital

1. Use the NPV function to help calculate the Net Present Value of the project in Case 1 (NPV plus the startup cost[a negative number]). Use 10% as your required return/cost of capital for Case 1

2. Calculate the present value of each cash flow and add the values together. Did the answer match your answer in Q1?

3. Use the XNPV function to calculate the Net Present Value for the project in Case 1. Use today's date as the start date T0, and the same date a year later for T1 and so on.

4. Use the IRR function to calculate the Internal Rate of Return for the project in Case 1.

5. Use the XIRR function to calculate the Internal Rate of Return for the project in Case 1. Use today's date as the start date T0, and the same date a year later for T1 and so on.

6: Use the MIRR function to calculate the Internal Rate of Return for the project in Case 1, where the finance rate is 12% and the reinvestment rate is 10%. Then describe an advantage and a disadvantage of using MIRR vs XIRR.

7. What is the Discounted Payback Period for Case 1?