Question: please show formula Do the following questions using Excel. Make sure you save your file. You will submit your Excel file under questions 5 when

 please show formula Do the following questions using Excel. Make sure

please show formula

Do the following questions using Excel. Make sure you save your file. You will submit your Excel file under questions 5 when you have finished all 4 questions. Answer all 4 questions using one Excel file and submit that one Excel file under question 5. 3. XYZ Co has two mutually exclusive investments X and Y. Investment X has an initial capital outlay of $105 million, and the investment is expected to generate $64 million in one year, $45 million in two years and $30 million in three years Investment Y has an initial capital outlay of $125 million, and the investment is expected to generate $70 million in one year, $55 million in two years and $40 million in three years. a. Use the information from Question 1 and Question 2, determine the market value of debt (both Bond A and Bond B), market value of equity, and the capital structure of XYZ Co (% of debt capital and % of equity capital) b. Use the information from Question 1 and Question 2, determine XYZ's after tax cost of debt (for both Bond A and Bond B), cost of equity and weighted average cost of capital, assuming XYZ's tax rate is 20% c. Determine the internal rate of retum of Investment X, Investment Y and Marginal Investment (Y-X). Which investment should be chosen? Explain. (Note: If you do not know how to find the weighted average cost of capital, just use 10% as the cost of capital.) d. Determine the net present value of Investment x, Investment Y, and Marginal Investment (Y-X). Which investment should be chosen? Explain. (Note: If you do not know how to find the weighted average cost of capital, just use 10% as the cost of capital.)

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