Evaluate the following project using the appropriate functions in Excel: 1. Find the NPV and...

90.2K

Verified Solution

Question

Accounting

image
Evaluate the following project using the appropriate functions in Excel: 1. Find the NPV and IRR of a project with the following cash flows and a 12% cost of capital. Also calculate t MIRR assuming a reinvestment rate of 8% (recall that the modified IRR assumes reinvestment is at the cost o capital or another rate rather than the IRR). Use IF statements to add an accept/re ect decision for cach. 2. Calculate the Profitability Index of the project. The profitability index weights the PV of future cash flows by the initial investment in order to rank projects by return to each dollar invested. Would the project be accepted? 3. Construct a table to calculate the NPV for costs of capital between 0% and 40%. Graph the results of table to show the NPV profile. Label your axes and customize the graph as necessary. 4. What is the Payback Period for the cash flows in (1)? Calculate with at least one method. Consider using IF, AND, ABS, MAX, SUM, ROUND, COUNTIF, and/or VLOOKUP in your formulas. Evaluate the following project using the appropriate functions in Excel: 1. Find the NPV and IRR of a project with the following cash flows and a 12% cost of capital. Also calculate t MIRR assuming a reinvestment rate of 8% (recall that the modified IRR assumes reinvestment is at the cost o capital or another rate rather than the IRR). Use IF statements to add an accept/re ect decision for cach. 2. Calculate the Profitability Index of the project. The profitability index weights the PV of future cash flows by the initial investment in order to rank projects by return to each dollar invested. Would the project be accepted? 3. Construct a table to calculate the NPV for costs of capital between 0% and 40%. Graph the results of table to show the NPV profile. Label your axes and customize the graph as necessary. 4. What is the Payback Period for the cash flows in (1)? Calculate with at least one method. Consider using IF, AND, ABS, MAX, SUM, ROUND, COUNTIF, and/or VLOOKUP in your formulas

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students