Question: please show all the excel steps Year 0 1 2 As director of capital budgeting you have two projects to consider Project X and Y.
Year 0 1 2 As director of capital budgeting you have two projects to consider Project X and Y. Each project has a cost of $10,000, and the cost of capital is 6e. The projects expected net cash flows are as follow Project x Cash Hows Project Y Cash Flows $10,000 $10,000 8.500 3,000 3.000 4500 4,500 4,500 4,500 2.000 1. Estimate each project's payback period. Net Present Value (NPV), internal Rate of Return (RI). Profitability Index PI) and Modified internal rate of return (MIRR) (50 points) 2. Which project or projects should be accepted if they are independent Why? (10 points) 3. Which project should be accepted if they are mutually exclusive? Why 110 points) 4. Estimate the crossover rate of these two projects of the cost of capital is 10 and assuming X & Yare mutually exclusive, which project should be taken (20 points)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
