Question: Need help with the excel formula shortcuts: 13. As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with

Need help with the excel formula shortcuts:

13. As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with the following net cash flows:
Year Project x Project z
0 -100,000 -100,000
1 50,000 10,000
2 40,000 30,000
3 30,000 40,000
4 10,000 60,000
If Denvers cost of capital is 15 percent, which project would you choose?

14. The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firms cost of capital is 10 percent. What is the payback period for this investment?

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