Module 6 Worksheet: Chapter 10 Capital Budgeting – Complete in Excel Please complete the following and upload...

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Module 6 Worksheet: Chapter 10 Capital Budgeting –Complete in Excel
Please complete the following and upload this to the drop box bySunday 11:55PM
       A project has and initialcost of $32,000, expected net cash inflows of $9,500 per year for 7years, and a cost of capital of 10%.
       What isthe project’s NPV?
       What is the project’sIRR?
       What is the projectspayback period?
          Yourdivision is considering two investment projects, each of whichrequires an up-front expenditure of $20 million. You estimate thatthe investments will produce the following net cash flows:
Year                      ProjectA             Project B
1                             $5,000,000          $20,000,000
2                             10,000,000          10,000,000
3                             20.000.000          6,000,000
       What are the two project’sNPVs assuming the cost of capital is 8%, 14%, 20%?
       What are the two projects’IRRs at those same costs of capital?

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Question 1 a Solution NPV of project Present value of cash inflows Present value of cash outflows Present value of cash inflows 9500 Cumulative present value factors for 7 years at 10 using present value table 9500 4868 approx 46246 Present value of cash outflow 32000 Given in the question in form of See Answer

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Module 6 Worksheet: Chapter 10 Capital Budgeting –Complete in ExcelPlease complete the following and upload this to the drop box bySunday 11:55PM A project has and initialcost of $32,000, expected net cash inflows of $9,500 per year for 7years, and a cost of capital of 10%. What isthe project’s NPV? What is the project’sIRR? What is the projectspayback period? Yourdivision is considering two investment projects, each of whichrequires an up-front expenditure of $20 million. You estimate thatthe investments will produce the following net cash flows:Year ProjectA Project B1 $5,000,000 $20,000,0002 10,000,000 10,000,0003 20.000.000 6,000,000 What are the two project’sNPVs assuming the cost of capital is 8%, 14%, 20%? What are the two projects’IRRs at those same costs of capital?