Instructions

Submit TWO FILES for this homework assignment. In this Word document, enter your final answers. In addition to this Word document, upload an Excel spreadsheet to support all the final answers you typed for this assignment. I will not accept assignments that are hand written. You must show all your working by using an Excel spreadsheet to support your answer in the document file. Points will be deducted if you do not upload an Excel spreadsheet and if you only give the final answer without showing your working regardless of giving the correct answer. When in doubt, providing more details of your work is safer than less. You will also lose points for poor formatting.

1. A facility upgrade for womens softball has a cost of $65,125, expected net cash inflows are $9,000 per year for 20 years, and a cost of capital of 11%. The project has a useful life of 20 years, but your organization does not have a maximum payback period.

a-What is the projects payback period?

b-What is the projects discounted payback period?

c-What is the projects NPV?

d-What is the projects IRR?

e-Should the facility upgrade be accepted? Why or why not?

Remember to enter your final answers in this Word document and to upload an Excel spreadsheet to demonstrate the working of your final answers. Be sure to use headings within the spreadsheet to present your work with clarity.