Question: with excel use pls (a) For the following mutually exclusive projects (A, B, C and D) find the Payback period, NPV, and IRR, given the

 with excel use pls (a) For the following mutually exclusive projects

with excel use pls

(a) For the following mutually exclusive projects (A, B, C and D) find the Payback period, NPV, and IRR, given the required rate of return is 11.00%.p.a. (Assume all future cash flows only occur by the end of each year). Based on your results, which project should be accepted and why. Year 0 1 2 3 4 5 6 7 1,000 500 A B D -8,500 -4,100 -4,000 -3,500 1,500 1200 2,000 1,700 2,500 1200 1,000 1,700 3,000 1200 -500 1,700 2000 1200 2,000 1500 1200 -600 (3.5 marks) (b) AAA energy company is considering a project of solar energy plant. There are two different grades of solar panel under consideration. These two grades of solar panel come with different cost and efficiency. Grade A is the best in efficiency and lasts for 15 years with higher cost. Grade B is less efficient and lasts for 10 years, but the cost if lower. The company has already secured the land usage contract for the energy plant. The local government has granted the company free usage of the land as long as it operates as support for green energy and environment. The company intends to operate the project for infinite time, which means that the solar panels will be replaced once they reached their maximum useful life. The project team provided some estimated figures as below: Detail Grade A Grade B Purchase Price Yearly Revenue Yearly Costs Salvage Value Useful Life $555,000 $110,000 ($12,000) $10,000 15 years $350,000 $85,000 ($8,000) $9,000 10 years Assuming it's a perfect capital market that there are no taxes or inflation, so the above figures won't change in the future. The project team conducted a further analysis and provided some information below: Project beta 1.4, risk free rate 5%.p.a, and market risk premium 6%.p.a. Please complete the analysis for AAA energy company and provide advice on the choice of solar panel. (a) For the following mutually exclusive projects (A, B, C and D) find the Payback period, NPV, and IRR, given the required rate of return is 11.00%.p.a. (Assume all future cash flows only occur by the end of each year). Based on your results, which project should be accepted and why. Year 0 1 2 3 4 5 6 7 1,000 500 A B D -8,500 -4,100 -4,000 -3,500 1,500 1200 2,000 1,700 2,500 1200 1,000 1,700 3,000 1200 -500 1,700 2000 1200 2,000 1500 1200 -600 (3.5 marks) (b) AAA energy company is considering a project of solar energy plant. There are two different grades of solar panel under consideration. These two grades of solar panel come with different cost and efficiency. Grade A is the best in efficiency and lasts for 15 years with higher cost. Grade B is less efficient and lasts for 10 years, but the cost if lower. The company has already secured the land usage contract for the energy plant. The local government has granted the company free usage of the land as long as it operates as support for green energy and environment. The company intends to operate the project for infinite time, which means that the solar panels will be replaced once they reached their maximum useful life. The project team provided some estimated figures as below: Detail Grade A Grade B Purchase Price Yearly Revenue Yearly Costs Salvage Value Useful Life $555,000 $110,000 ($12,000) $10,000 15 years $350,000 $85,000 ($8,000) $9,000 10 years Assuming it's a perfect capital market that there are no taxes or inflation, so the above figures won't change in the future. The project team conducted a further analysis and provided some information below: Project beta 1.4, risk free rate 5%.p.a, and market risk premium 6%.p.a. Please complete the analysis for AAA energy company and provide advice on the choice of solar panel

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