Question: Use EXCEL and show formulas (excel) and calculations . dont answer if excel is not used . use the excel template provided UU! Uull 11.

Use EXCEL and show formulas (excel) and calculations . dont answer if excel is not used . use the excel template provided
Use EXCEL and show formulas (excel) and calculations . dont answer if
excel is not used . use the excel template provided UU! Uull

UU! Uull 11. (Multiple IRRs) You would like to open an investment company named Rip em. The cost of building up the company is $750,000. You offer your clients the following deal: For five annual deposits of $500,000 for the next 5 years, you will pay them $2 million at year 6. Your cash flow is expected to be as follows: A 1 Year ear IBT ID EFTGT 2 Cash flow B C D E F 1 2 3 4 5 - 750.000 500.000 500.000 500.000 500.000 500,000 -2,000,000 a. If your cost of capital is 5%, should you make the investment? b. If your cost of capital is 10%, should you make the investment? c. If your cost of capital is 45%, should you make the investment? d. For what range of cost of capital should you accept the project? Explain. 12. (MIRR) For the question above, if your "reinuman 15%, what is the mo Paste BIU A 3 Eto Wrap Text -Merge & Center General s. % ) Co F28 x fx 1 2 Year Cash flow -750,000 500,000 500,000 500,000 500.000 500.000 -2,000,000 10% 45% 4 Cost of capital, 5 NPV Acceptreject? Part d: to decide on a range of cost of capital to accept/reject, make a table of NPV for different Cost of capital, NPV 2 8% 10% 12% 14% 1692 18% 20% 22% 24% 26% 30% 34% 38% 42% 46% 50% 54%

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