PROBLEM1

PROBLEM2

1. Find the Excel file HW2.xls in the Data folder on Blackboard. The Probleml sheet in that file contains data for projected cash flows for two projects. Using MS Excel, A) Make a plot containing NPV profiles of the two projects, where NPV is a function of required rate of return. B) Find IRRs of the two projects. C) Identify the crossover point between the two projects. D) Compute payback period and discounted payback period (for R=6%) for each project. 2. Find the Excel file HW2.xls in the Data folder on Blackboard. The Problem2 sheet in that file contains data for projected cash flows for two projects. Using MS Excel, A) Make a plot containing NPV profiles of the two projects, where NPV is a function of required rate of return. B) Find IRRs of the two projects. C) Identify the crossover point between the two projects. F 175 A B 1 Project A 2 Year Cash Flow 3 0 -400 4 1 220 5 2 220 6 3 220 7 4 220 8 5 220 9 6 -750 10 D E E Project B Year Cash Flow 0 -350 1 2 175 3 175 4 175 5 175 -540 O OWN F A B 1 Project A 2 Year Cash Flow 3 0 -700 4 1 55 5 2 65 6 3 75 7 4 85 8 5 95 9 6 105 10 7 115 11 8 125 12 9 135 13 10 145 14 GOWN D E Project B Year Cash Flow 0 -575 1 40 2 50 3 60 4 70 5 80 6 90 7 100 8 110 9 120 10 130 OWN