Question: Please use Excel and if possible help show formulas. Thank you! PART 1 B-CAPITAL BUDGETING The same firm as in Part 1 is considering the
PART 1 B-CAPITAL BUDGETING The same firm as in Part 1 is considering the investment of two independent projects, X and Y, which are described below. Please do not assume anything. Use a WACC of 15% to evaluate the projects Cost of Capital PROJECT X PROJECT Y A. Calculate Payback period for both projects For the Payback Period Calculation Cash Inflews Calculate NPV for both projects Cash End of Year Balances hiriel vestment 1511,050,0001 ($11,250,000) C.Calculate for both projects PROJECT X PROJECT Y 1 $3,500,000 $5,500,000 D. Calculate MIRR for both projects 2 $3.500.000 $5.800.000 E. Which project should the firm accept? Why? 3 $5.000.000 $2.900.000 4 $5,800,000 $1.950,000 Yee Year 1 12 13 Please enter your formules in the blue calls A. Payback B. NIV D. MIRR L. Accept project YES OR NO YES OR NO Why! End of
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