Question: Will need to show the excel formula used to get answer PV COST OF CAR 12% Question 6a A music company is considering creating the

Will need to show the excel formula used to get answer

Will need to show the excel formula used to get answer PV

PV COST OF CAR 12% Question 6a A music company is considering creating the world's largest piano. Cost and cash flow details are listed below. The company requires a 12% return on its capital. Cost of Project $2,452,153 a) What is the present value of the yearly cash flows? (round to nearest dollar) Yr 0 cash flow ($2,500,000) Question 6b_b) What is the net present value of the project? (round to nearest dollar) Yr 1 cash flow (300,000) Yr 2 cash flow 2 (150,000) ($47,847) Yr 3 cash flow 50,000 Question 6c c) What is the internal rate of return of the project? (round to two decimal places) Yr 4 cash flow 250,000 Yr 5 cash flow 800.000 1,200,000 11.69% 6 points Yr 6 cash flow Yr 7 cash flow 3,500,000 Question 7a 4.00 Question 7b 1 Two projects, Alpha and Beta, are being considered using the payback method. Each has an initial cost of $100,000. The annual cash flows for each project are listed below. a) What is the pay back period in years for Alpha? (round to two decimal places) Year Project Alpha Project Beta b) What is the pay back period in years for Beta? (round to two decimal places) 25,000 15,000 2 25,000 25,000 3 25,000 45,000 25,000 30,000 25,000 20,000 25,000 15,000 3.50 4 points 4 5 6

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