Question: please do on excel and show functions please SUNK COSTS REVISITED begin{tabular}{llr} 2 & House cost & 100,000 3 & Fix up cost &

SUNK COSTS REVISITED \begin{tabular}{llr} 2 & House cost & 100,000 \\ 3 & Fix up cost & 20,000 \\ 4 & Value of house as is & 60,000 \\ 5 & Discount rate & 9.00% \\ \hline 6 & & \end{tabular} You have invested $100,000 in a badly built house. For $20,000 invested today, you can fix up the house and sell it 1 year from today for $90,000. As an alternative, you can sell the house today for $60,000. ( 10 points) a. Should you take into account the $100,000 cost already invested in the house? b. If the relevant discount rate is 9%, which alternative should you prefer? Make sure that you use the best capital budgeting technique, NPV to evaluate both alternatives. c. Use Goal Seek function to find the discount rate that makes you indifferent between the two alternatives. You should create another worksheet to perform the Goal Seek function. Hint: You should set NPV of "fix and sell" to NPV of "sell it now" to get the discount rate
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