Question: I need help solving these questions on an excel spread sheet if possible ? Can someone assist me Assignment 5 - Capital Budgeting Part 1

I need help solving these questions on an excel spread sheet if possible ? Can someone assist me

I need help solving these questions on an excel spread sheet if

Assignment 5 - Capital Budgeting Part 1 - M class Open a new (fresh) excel workbook to perform you calculations and make sure to highlight each of your final answers. B are mutually exclusive while C is independent. Following are their expected cash flows year 0 1 2 3 4 project A Project B Project C -60,000.00 -40,000.00 -20,000.00 0 40,000.00 35,000.00 82,000. 40,000. 30,000. 00 00 00 60,000. 20,000. 2,000. 00 00 00 20,000.00 10,000.00 -40,000.00 Assuming no capitol rationing a required rate of return (cost of capital) of 12% for all three projects. 1) Calculate NPV for each project. 2) Calculate IRR(s) for each project. 3) Calculate PI for each project. 4) Using cost of capital, as a financing and reinvestment rate, calculate MIRR for each project. 5) If A&B profiles cross, calculate the exact crossover point between project A & B. 6) Which of the three projects, if any, should be accepted and why? Please highlight and label each of your answers on the spread sheet. Prepare a table showing the relationship between discount rate and npv for all three projects Use the same table to plot NPV profile and all three projects Your discount rate should extend to include the heights IRR. First two mutually exclusive And third independent Third project c is non conventional project Lowest IRR and highest IRR on graph year project A 0 1 2 3 4 -60,000.00 0 82,000.00 60,000.00 20,000.00 66,507.75 48.11% 2.11 33% Calculate NPV for each project Calculate IRR(s) for each project. Calculate PI for each project calculate MIRR for each project. year Project A-B 0 1 2 3 4 -20,000.00 -40,000.00 42,000.00 40,000.00 10,000.00 24.33% Cross Over rate Project A Need to be Accepted because Project A has the Highest NPV NPV Discount Rate project A -13% -12% -11% -10% -9% -8% -7% -6% -5% -4% -3% -2% -1% 0% 1% 2% 3% 174,362.65 167,283.40 160,508.86 154,022.25 147,807.92 141,851.23 136,138.50 130,656.93 125,394.53 120,340.05 115,482.96 110,813.36 106,321.95 102,000.00 97,839.29 93,832.09 89,971.11 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 26% 27% 28% 29% 30% 31% 32% 33% 34% 35% 36% 37% 38% 39% 40% 41% 42% 43% 44% 45% 46% 47% 48% 49% 50% 51% 86,249.47 82,660.72 79,198.74 75,857.75 72,632.31 69,517.27 66,507.75 63,599.14 60,787.07 58,067.41 55,436.23 52,889.82 50,424.64 48,037.35 45,724.75 43,483.84 41,311.73 39,205.69 37,163.11 35,181.53 33,258.57 31,392.00 29,579.67 27,819.53 26,109.64 24,448.13 22,833.23 21,263.25 19,736.55 18,251.59 16,806.89 15,401.03 14,032.65 12,700.46 11,403.20 10,139.69 8,908.79 7,709.39 6,540.46 5,400.98 4,289.99 3,206.56 2,149.80 1,118.85 112.90 (868.85) (1,827.16) (2,762.75) 52% 53% 54% 55% 56% 57% 58% 59% 60% 61% 62% 63% 64% 65% 66% 67% 68% 69% 70% 71% 72% 73% 74% 75% 76% 77% 78% 79% 80% 81% 82% 83% 84% 85% 86% 87% 88% 89% 90% 91% 92% 93% 94% 95% 96% 97% 98% 99% (3,676.34) (4,568.58) (5,440.14) (6,291.64) (7,123.68) (7,936.84) (8,731.69) (9,508.75) (10,268.55) (11,011.60) (11,738.37) (12,449.33) (13,144.92) (13,825.59) (14,491.75) (15,143.81) (15,782.15) (16,407.16) (17,019.19) (17,618.61) (18,205.74) (18,780.93) (19,344.48) (19,896.71) (20,437.91) (20,968.38) (21,488.39) (21,998.20) (22,498.09) (22,988.31) (23,469.10) (23,940.70) (24,403.34) (24,857.23) (25,302.61) (25,739.68) (26,168.64) (26,589.69) (27,003.02) (27,408.81) (27,807.25) (28,198.51) (28,582.77) (28,960.18) (29,330.90) (29,695.10) (30,052.92) (30,404.50) 100% (30,750.00) Project B Project C -40,000.00 -20,000.00 40,000.00 35,000.00 40,000.00 30,000.00 20,000.00 2,000.00 10,000.00 -40,000.00 51,277.92 10,793.66 76.98% -8.19% 2.28 1.54 35% 16% 200,000.00 NPV Profil 150,000.00 100,000.00 NPV NPV Project B Project C 106,651.20 (6,918.07) 103,130.81 (5,253.31) 99,750.76 (3,716.05) 96,503.58 (2,296.91) 93,382.27 (987.25) 90,380.29 220.86 87,491.51 1,334.74 84,710.20 2,361.14 82,030.99 3,306.30 79,448.81 4,175.95 76,958.95 4,975.41 74,556.95 5,709.60 72,238.61 6,383.06 70,000.00 7,000.00 67,837.41 7,564.31 65,747.34 8,079.62 63,726.49 8,549.26 Cross Over rate Betw 50,000.00 Project C IRR Proje 61,771.76 59,880.19 58,049.03 56,275.64 54,557.53 52,892.37 51,277.92 49,712.07 48,192.83 46,718.29 45,286.65 43,896.21 42,545.34 41,232.49 39,956.19 38,715.04 37,507.72 36,332.94 35,189.51 34,076.27 32,992.11 31,936.00 30,906.92 29,903.93 28,926.10 27,972.56 27,042.47 26,135.04 25,249.50 24,385.11 23,541.18 22,717.03 21,912.01 21,125.51 20,356.94 19,605.72 18,871.30 18,153.17 17,450.82 16,763.77 16,091.54 15,433.70 14,789.80 14,159.44 13,542.23 12,937.76 12,345.68 11,765.63 8,976.36 9,363.79 9,714.25 10,030.23 10,314.04 10,567.85 10,793.66 10,993.35 11,168.65 11,321.20 11,452.51 11,564.00 11,656.97 11,732.68 11,792.26 11,836.79 11,867.28 11,884.68 11,889.85 11,883.62 11,866.76 11,840.00 11,804.00 11,759.41 11,706.81 11,646.76 11,579.78 11,506.35 11,426.95 11,341.98 11,251.87 11,156.99 11,057.68 10,954.30 10,847.14 10,736.50 10,622.66 10,505.87 10,386.39 10,264.43 10,140.22 10,013.95 9,885.82 9,756.00 9,624.66 9,491.95 9,358.02 9,223.02 - Project C IRR Proje -13% -10% -7% -4% -1% 2% 5% 8% 11% 14% 17% 20% 23% 26% 29% 32% 35% 38% 41% 44% 47% 50% 53% 50,000.00 (50,000.00) 11,197.26 10,640.25 10,094.27 9,559.02 9,034.21 8,519.54 8,014.74 7,519.54 7,033.69 6,556.94 6,089.04 5,629.77 5,178.89 4,736.20 4,301.48 3,874.54 3,455.16 3,043.17 2,638.38 2,240.61 1,849.69 1,465.45 1,087.73 716.37 351.22 (7.86) (361.03) (708.41) (1,050.14) (1,386.36) (1,717.19) (2,042.76) (2,363.17) (2,678.55) (2,989.02) (3,294.67) (3,595.62) (3,891.97) (4,183.82) (4,471.27) (4,754.41) (5,033.34) (5,308.13) (5,578.89) (5,845.70) (6,108.63) (6,367.78) (6,623.21) 9,087.07 8,950.29 8,812.81 8,674.71 8,536.12 8,397.11 8,257.79 8,118.23 7,978.52 7,838.71 7,698.90 7,559.13 7,419.47 7,279.98 7,140.70 7,001.70 6,863.00 6,724.67 6,586.73 6,449.22 6,312.19 6,175.65 6,039.65 5,904.21 5,769.35 5,635.10 5,501.49 5,368.53 5,236.24 5,104.65 4,973.75 4,843.58 4,714.15 4,585.45 4,457.52 4,330.35 4,203.96 4,078.36 3,953.55 3,829.53 3,706.32 3,583.92 3,462.32 3,341.55 3,221.60 3,102.46 2,984.15 2,866.66 (6,875.00) 2,750.00 NPV Profile Cross Over rate Between Project A and B Project A IRR Project B IRR project A Project B 26% 29% 32% 35% 38% 41% 44% 47% 50% 53% 56% 59% 62% 65% 68% 71% 74% 77% 80% 83% 86% 89% 92% 95% 98% Project A IRR Project B IRR project A Project B year project A 0 1 2 3 4 -60,000.00 0 82,000.00 60,000.00 20,000.00 66,507.75 48.11% 2.11 33% Calculate NPV for each project Calculate IRR(s) for each project. Calculate PI for each project calculate MIRR for each project. year Project A-B 0 1 2 3 4 -20,000.00 -40,000.00 42,000.00 40,000.00 10,000.00 24.33% Cross Over rate Project A Need to be Accepted because Project A has the Highest NPV NPV Discount Rate project A -13% -12% -11% -10% -9% -8% -7% -6% -5% -4% -3% -2% -1% 0% 1% 2% 3% 174,362.65 167,283.40 160,508.86 154,022.25 147,807.92 141,851.23 136,138.50 130,656.93 125,394.53 120,340.05 115,482.96 110,813.36 106,321.95 102,000.00 97,839.29 93,832.09 89,971.11 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 26% 27% 28% 29% 30% 31% 32% 33% 34% 35% 36% 37% 38% 39% 40% 41% 42% 43% 44% 45% 46% 47% 48% 49% 50% 51% 86,249.47 82,660.72 79,198.74 75,857.75 72,632.31 69,517.27 66,507.75 63,599.14 60,787.07 58,067.41 55,436.23 52,889.82 50,424.64 48,037.35 45,724.75 43,483.84 41,311.73 39,205.69 37,163.11 35,181.53 33,258.57 31,392.00 29,579.67 27,819.53 26,109.64 24,448.13 22,833.23 21,263.25 19,736.55 18,251.59 16,806.89 15,401.03 14,032.65 12,700.46 11,403.20 10,139.69 8,908.79 7,709.39 6,540.46 5,400.98 4,289.99 3,206.56 2,149.80 1,118.85 112.90 (868.85) (1,827.16) (2,762.75) 52% 53% 54% 55% 56% 57% 58% 59% 60% 61% 62% 63% 64% 65% 66% 67% 68% 69% 70% 71% 72% 73% 74% 75% 76% 77% 78% 79% 80% 81% 82% 83% 84% 85% 86% 87% 88% 89% 90% 91% 92% 93% 94% 95% 96% 97% 98% 99% (3,676.34) (4,568.58) (5,440.14) (6,291.64) (7,123.68) (7,936.84) (8,731.69) (9,508.75) (10,268.55) (11,011.60) (11,738.37) (12,449.33) (13,144.92) (13,825.59) (14,491.75) (15,143.81) (15,782.15) (16,407.16) (17,019.19) (17,618.61) (18,205.74) (18,780.93) (19,344.48) (19,896.71) (20,437.91) (20,968.38) (21,488.39) (21,998.20) (22,498.09) (22,988.31) (23,469.10) (23,940.70) (24,403.34) (24,857.23) (25,302.61) (25,739.68) (26,168.64) (26,589.69) (27,003.02) (27,408.81) (27,807.25) (28,198.51) (28,582.77) (28,960.18) (29,330.90) (29,695.10) (30,052.92) (30,404.50) 100% (30,750.00) Project B Project C -40,000.00 -20,000.00 40,000.00 35,000.00 40,000.00 30,000.00 20,000.00 2,000.00 10,000.00 -40,000.00 51,277.92 10,793.66 76.98% -8.19% 2.28 1.54 35% 16% 200,000.00 NPV Profil 150,000.00 100,000.00 NPV NPV Project B Project C 106,651.20 (6,918.07) 103,130.81 (5,253.31) 99,750.76 (3,716.05) 96,503.58 (2,296.91) 93,382.27 (987.25) 90,380.29 220.86 87,491.51 1,334.74 84,710.20 2,361.14 82,030.99 3,306.30 79,448.81 4,175.95 76,958.95 4,975.41 74,556.95 5,709.60 72,238.61 6,383.06 70,000.00 7,000.00 67,837.41 7,564.31 65,747.34 8,079.62 63,726.49 8,549.26 Cross Over rate Betw 50,000.00 Project C IRR Proje 61,771.76 59,880.19 58,049.03 56,275.64 54,557.53 52,892.37 51,277.92 49,712.07 48,192.83 46,718.29 45,286.65 43,896.21 42,545.34 41,232.49 39,956.19 38,715.04 37,507.72 36,332.94 35,189.51 34,076.27 32,992.11 31,936.00 30,906.92 29,903.93 28,926.10 27,972.56 27,042.47 26,135.04 25,249.50 24,385.11 23,541.18 22,717.03 21,912.01 21,125.51 20,356.94 19,605.72 18,871.30 18,153.17 17,450.82 16,763.77 16,091.54 15,433.70 14,789.80 14,159.44 13,542.23 12,937.76 12,345.68 11,765.63 8,976.36 9,363.79 9,714.25 10,030.23 10,314.04 10,567.85 10,793.66 10,993.35 11,168.65 11,321.20 11,452.51 11,564.00 11,656.97 11,732.68 11,792.26 11,836.79 11,867.28 11,884.68 11,889.85 11,883.62 11,866.76 11,840.00 11,804.00 11,759.41 11,706.81 11,646.76 11,579.78 11,506.35 11,426.95 11,341.98 11,251.87 11,156.99 11,057.68 10,954.30 10,847.14 10,736.50 10,622.66 10,505.87 10,386.39 10,264.43 10,140.22 10,013.95 9,885.82 9,756.00 9,624.66 9,491.95 9,358.02 9,223.02 - Project C IRR Proje -13% -10% -7% -4% -1% 2% 5% 8% 11% 14% 17% 20% 23% 26% 29% 32% 35% 38% 41% 44% 47% 50% 53% 50,000.00 (50,000.00) 11,197.26 10,640.25 10,094.27 9,559.02 9,034.21 8,519.54 8,014.74 7,519.54 7,033.69 6,556.94 6,089.04 5,629.77 5,178.89 4,736.20 4,301.48 3,874.54 3,455.16 3,043.17 2,638.38 2,240.61 1,849.69 1,465.45 1,087.73 716.37 351.22 (7.86) (361.03) (708.41) (1,050.14) (1,386.36) (1,717.19) (2,042.76) (2,363.17) (2,678.55) (2,989.02) (3,294.67) (3,595.62) (3,891.97) (4,183.82) (4,471.27) (4,754.41) (5,033.34) (5,308.13) (5,578.89) (5,845.70) (6,108.63) (6,367.78) (6,623.21) 9,087.07 8,950.29 8,812.81 8,674.71 8,536.12 8,397.11 8,257.79 8,118.23 7,978.52 7,838.71 7,698.90 7,559.13 7,419.47 7,279.98 7,140.70 7,001.70 6,863.00 6,724.67 6,586.73 6,449.22 6,312.19 6,175.65 6,039.65 5,904.21 5,769.35 5,635.10 5,501.49 5,368.53 5,236.24 5,104.65 4,973.75 4,843.58 4,714.15 4,585.45 4,457.52 4,330.35 4,203.96 4,078.36 3,953.55 3,829.53 3,706.32 3,583.92 3,462.32 3,341.55 3,221.60 3,102.46 2,984.15 2,866.66 (6,875.00) 2,750.00 NPV Profile Cross Over rate Between Project A and B Project A IRR Project B IRR project A Project B 26% 29% 32% 35% 38% 41% 44% 47% 50% 53% 56% 59% 62% 65% 68% 71% 74% 77% 80% 83% 86% 89% 92% 95% 98% Project A IRR Project B IRR project A Project B

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