Question: Hello, please post the answer with the excel function used to solve the problem. Thank you. Question 5: Suppose we have a project with the
Hello, please post the answer with the excel function used to solve the problem. Thank you.
| Question 5: Suppose we have a project with the following cash flows | ||||||
| You need to use the functions built in in excel to answer the question. Manually fill in the answer will receive 0 point | ||||||
| Year | CFs |
| 0 | -110,000 |
| 1 | 13,000 |
| 2 | 17,050 |
| 3 | 20,000 |
| 4 | 29,010 |
| 5 | 30,000 |
| 6 | 27,800 |
| 7 | 17,040 |
| 8 | 22,080 |
| 9 | 12,100 |
| a) What is the net present value of this project, assuming the required rate of return is 8%? (5 points) |
| NPV= |
| b) What is the IRR of the project? (2.5 points) |
| IRR= |
| c) Do you accept the project, why? (2.5 points) |
| d) If the required rate is 12%, do you accept the project, why? (5 points) |
| NPV= |
| e) Create NPV profile with graph, using information below (5 points) |
| Return | NPV |
| 0% | |
| 5% | |
| 10% | |
| 15% | |
| 20% | |
| 25% | |
| 30% | |
| 35% | |
| 40% |
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