QUESTIONS PROJECT ONE

Use the excel functions to calculate:

-Net present Value(no inflation)

-Net present value(inflation)

-Internal Rate of Return and

-Rate On Investment(no inflation)

Discounted cash flow(project)

present= beginning of the year 2022

Interest rate/ cost of capital=10%

Annual inflation rate=2.25%

Investment =beginning of 2022 is $2200 000

Net profit= beginning of 2022 is ($2200.000)

Beginning of 2023= $300000

beginning of 2024= $650000

Beginning of 2025= $975000

Beginning of 2026= $1230000

QUESTIONS PROJECT TWO

Use the excel functions to calculate:

-Net present Value(no inflation)

-Net present value(inflation)

-Internal Rate of Return and

-Rate On Investment(no inflation)

Investment beginning of 2022= $3280000

Net profit beginning of 2022= ($3280000)

Beginning of 2023= $ 400000

Beginning of 2024= $1 200 000

Beginning of 2025= $ 1000 000

Beginning of 2026= $ 2 085 000

1- If project are to be selected based on the Net present Value, would project one or two be chosen?

2- If project are to be selected based on Internal Rate of Return , would project one or two be chosen?

3- Not considering inflation, in which year is project one investment recovered?

4-Not considering inflation, in which year is project two investment recovered?