With the use of Excel, calculate the worth of each alternative accordingly. 2. At what Exit price
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Question:
With the use of Excel, calculate the worth of each alternative accordingly.
2. At what Exit price would the two alternatives be identical in their worth
Discount rate = 9% for both projects
| Year | Free Cash Flow | PV |
| 0 | -10000000 | -10000000 |
| 1 | 2050000 | 1069138.756 |
| 2 | 2050000 | 604401.482 |
| 3 | 2050000 | 368322.1267 |
| 4 | 2050000 | 240641.1944 |
| 5 | 2050000 | 167658.0615 |
| 6 | 2050000 | 123913.9253 |
| 7 | 2050000 | 96661.68695 |
| 8 | 2050000 | 79196.08791 |
| 9 | 2050000 | 67831.76122 |
| 10 | 2050000 | 60464.9125 |
| Year | Free Cash Flow | PV |
| 0 | -7000000 | -7000000 |
| 1 | 1850000 | 964832.5359 |
| 2 | 1850000 | 545435.4837 |
| 3 | 1850000 | 332388.2607 |
| 4 | 1850000 | 217164.0047 |
| 5 | 1850000 | 151301.1775 |
| 6 | 1850000 | 111824.7619 |
| 7 | 1850000 | 87231.27847 |
| 8 | 1850000 | 71469.64031 |
| 9 | 1850000 | 61214.02842 |
| 10 | 1850000 | 54565.89665 |
Expert Answer:
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Related Book For 
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
