Question: Year Project A Project B 0 -15,000,000 -15,000,000 1 2,000,000 5,550,000 2 3,000,000 4,000,000 3 4,000,000 4,000,000 4 5,000,000 3,000,000 5 6,000,000 2,000, Please Calculate

Year Project A Project B
0 -15,000,000 -15,000,000
1 2,000,000 5,550,000
2 3,000,000 4,000,000
3 4,000,000 4,000,000
4 5,000,000 3,000,000
5 6,000,000 2,000,

Please Calculate in Excel :)

Emusk Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 8%.

A) Calculate the internal rate of return for Project B. (Enter percentages as decimals and round to 4 decimals).

B ) Calculate the incremental IRR (aka cross-over rate) for the two projects. (Enter percentages as decimals and round to 4 decimals).

C) Calculate the net present value for project A. (Round to 2 decimals)

D) Calculate the profitability index for project A. (Round to 3 decimals)

E) Calculate the payback period for project B. (Round to 3 decimals)

F) Calculate the profitability index for project A. (Round to 3 decimals)

G) Calculate the payback period for project B. (Round to 3 decimals)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!