Question: please answer in excel form with excel equations showing 1)Assuming we begin a project, which has the same OCFs and WACC as those in this
please answer in excel form with excel equations showing
1)Assuming we begin a project, which has the same OCFs and WACC as those in this company. You spend $4,000,000 to begin a project and you reduce initial (beginning) net working capital by 50,000. These are the only NWC capital involved in this project (ignore the change in NWC in the years for the yellow highlighted cells). At the end of the project, you will be able to recover 30% of your initial investment back as the salvage value. What is the NPV, IRR and profitability Index (PI) of this project. Using If statements, show whether you'll accept or reject the project. Also what if payback is 1.5 years and discounted payback are each is 3.5 years, what will be your decision? Year 1 Year 2 Year 3 Year 4 Year 5 Year O values $ 2,950,000 EBIT $ 235,000 Depreciation $ 105,000 Taxes* $ 475,000 OCF Year 0 2,950,000 235,000 1,032,500 Year O Year 1 Year 2 $ Year 3 $ Year 4 $ Year 5 $ - - - - -
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