Please solve the problems below using an excel sheet and the excel functions.

1) (15 pts) A firm is considering a project with an initial investment of $170,000 and required return of 12%. The following cash flows are expected over the 8-year life span of the project:

Year	Cash flows
1	35,300
2	46,200
3	50,000
4	22,620
5	15,100
6	5,200
7	11,740
8	89,300

Calculate the Net Present Value (NPV) of the project. Should the firm accept or reject the project based on the NPV criteria?

Calculate the Internal Rate of Return (IRR) of the project. Should the firm accept or reject the project based on the IRR criteria?

Calculate the Profitability Index (PI) of the project. Should the firm accept or reject the project based on the PI criteria?

2)(10 pts) You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value. Required rate of return on Project A is 10% and on project B is 13%.

Project A			Project B
Year	CFs		Year	CFs
0	-75,000		0	-70,000
1	19,000		1	10,000
2	48,000		2	16,000
3	12,000		3	72,000

Calculate the Net Present Value (NPV) of both projects. Which project should the firm choose based on the NPV criteria?

Calculate the Internal Rate of Return (IRR) of both projects. Which project should the firm choose based on the IRR criteria?

3)(5 pts) The bonds issued by Stainless Tubs bear an 8 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $952. What is the yield to maturity?

4)(5pts) Redesigned Computers has 6.5 percent coupon bonds outstanding with a maturity date of 8 years from now. The yield to maturity is 16 percent and the face value is $1,000. Interest is paid semiannually. What is the market price for these bonds?

5)(5 pts) Grand Adventure Properties offers a 9.5 percent coupon bond with annual payments. The yield to maturity is 11.2 percent and the maturity date is 11 years from today. What is the market price of this bond if the face value is $1,000?