Question: Use Excel for Calculation and Show the process like how you calculate it. Question 7 EvMBA Tech is negotiating with the mayor of Bean City

Use Excel for Calculation and Show the process like how you calculate it.

Use Excel for Calculation and Show the process like how you calculate

Question 7 EvMBA Tech is negotiating with the mayor of Bean City to start a manufacturing plant in an abandoned building. The cash flows for EvMBAT's proposed plan are: Year 3 372,000 Year 4 372,000 Year 0 Year 1 Year 2 372,000 1,000,000372000 The city has agreed to subsidize EvMBAT. In preliminary discussions, EvMBAT suggested two alternatives (a) Subsidize the project to bring its IRR to 30%, or (b) Subsidize the project to bring an NPV of $95,000 when cash flows are discounted at 25%. You have been hired to recommend a subsidy that minimizes the cost to the city. If the subsidy payment occur right away and not be scheduled for later years, which of the appropriate plans would you recommend to the City? In your computation, include how much of a subsidy would you recommend for each year under each alternative suggested by MBAT

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