Question: please answer a and b thank you ! please answer a,b,c in cells thank you!! A B C D 2 Question 2: (50%) Your firm
A B C D 2 Question 2: (50%) Your firm is considering two projects with the following cash flows. 3 4 WACC 15% 15% Project A 5 year 0 7 1 8 2 9 3 10 4 11 5 12 13 a. Calculate NPV and IRR for both projects 14 NPV 15 TRR -55,000 25,000 19,000 17,000 11,000 10,000 Project B -70,000 25,000 21,000 19,000 14,000 12,000 16 17 b Spin button Calculate the NPV for project A again then create a spin button to change the value of WACC to get various NPVs accordingly. Limit the WACC value from 5% to 20% with 18 1% incremental 19 Project A 20 21 22 23 24 25 26 27 28 29 30 year 0 1 2 3 4 5 -55,000 25,000 19,000 17,000 11,000 10,000 WACC NPV 15% Create the Spin Button here 25 26 27 2 3 4 5 UUUU 19,000 17,000 11,000 10,000 28 WACC NPV 15% Create the Spin Button here 29 30 31 32 33 34 C. Solver 40 If the company hopes to have $10,000 NPV on Project A, assume all future cash flows and WACC are the same, use "Solver" to find out what the initial investment of Project A 35 should be to ensure the company has $10,000 NPV ? 36 present your answer below 37 38 39 year Project A 0 41 -55,000 1 42 25,000 2 43 19,000 3 44 17,000 4 45 11,000 5 46 10,000 47 WACC 48 15% 49 50 51 52 53 56 55 NPY
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