Transcribed Image Text
create a 350 word memo for managementdescribe the use of internal rate of return, net present value, andpayback method in evaluating cash flows.describe the advantages and disadvantages of each method.calculate:1 if you want to accumulate $500,000 in 20 years, how much you needto deposit today that pays interest rate of 15%.2. what is the future value if you plan to invest$200,000for 5 years and the interest rate is 5%.3. what is the interest rate for an initial investmentof $100,000 to grow to $300,000 in 10 years.4. if your company purchases any annuity that will pay$50,000 per year for 10 years at 11% discount rate, what is thevalue of the annuity on the purchase date if the first annuitypayment is made on the date of the purchase.5. what is the rate of return required to accumulate$400,000, if you want to invest $10,000 per year for 20 years.assume all payments are made at the end of the period.calculate:the project cash flow generated for project A and project B.1. which project would you select and why?2.which project would you select under payback method if thediscount rate is 10% for both projects?Use Microsoft Excel!!!!Project A:initial investment is $10,000year 1 $5,000year 2 $5,000year 3 $5,000Project B:initial investment is $55,000year 1 $20,000year 2 $20,000year 3 $20,000