Missisauga is planning to bid for an 8-year government contract. The contract will pay Tk 30,000 next year. The payment will increase by Tk 2,000 every year until the final year. The equipment required to supply the product will require an investment of Tk 70,000 now, but it will last for only four years. Therefore, if Missisauga bids for the contract, it must plan to reinvest in the same equipment in the 4^th year, but equipment cost in the 4^th year will increase to Tk 75,000. ( Calculations and steps has to be shown in Excel ).

Determine the IRR of the project.

Using a financing rate of 18 percent and a reinvestment rate of 20 percent, determine the MIRR.

Determine the NPV of the project at 18 percent.

Make a recommendation statement about the bid.

please provide the excel file**

Answer rating: 100% (QA)

Missisauga Government Contract Analysis This Excel file analyzes the Internal Rate of Return IRR Modified Internal Rate of Return MIRR and Net Present ... View the full answer