AKKR - Short Form Returns

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Jan 9, 2024

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Project [xxx] Management Case Preliminary Buyout Model ($ in thousands) 'file:///var/filecabinet/temp/converter_assets/4a/51/4a51006e226ef9e0d9fd4a399b0d8539c1a8d69b.xlsx'#$Model Purchase Price Assumptions Accel-KKR Gross Equity IRR LTM EBITDA Multiple 6.0x 3-Year Exit (2020) LTM EBITDA $165,082 LTM EBITDA Multiple At Exit 87.9% 6.0x 7.0x 8.0x 9.0x 10.0x Transaction Enterprise Value $990,494 $990,494 6.0x (+) Cash --- TEV and 1,155,576 7.0x (-) Debt --- LTM EBITDA Multiple 1,320,658 8.0x Fully-Diluted Equity Value $990,494 At Entry 1,485,741 9.0x 1,650,823 10.0x Capitalization Assumptions Rollover of Existing Equity --- 5-Year Exit (2022) Management Option Pool 10.0% LTM EBITDA Multiple At Exit Preferred Equity, % of Equity at Close (100% = LLC) 90.0% 55.7% 6.0x 7.0x 8.0x 9.0x 10.0x Preferred Equity, Rate 10.00% $990,494 6.0x New Sr Debt, Rate 6.50% TEV and 1,155,576 7.0x New Sub Debt, Rate 10.00% LTM EBITDA Multiple 1,320,658 8.0x New Debt, Origination Fee 1.25% At Entry 1,485,741 9.0x LTM EBITDA $165,082 1,650,823 10.0x xLTM % of Sources $ amt EBITDA Total Cap. Summary Projections and Cash Flow New Sr Debt $495,247 3.0x 48.8% FYE December 31 New Sub Debt 165,082 1.0x 16.3% 2016A 2017E 2018E 2019E 2020E 2021E 2022E 2023E Rollover Existing Debt --- --- --- New Accel-KKR Equity 354,776 34.9% Revenue $7,460,063 $7,207,361 $7,714,851 $8,258,076 $8,839,551 $9,461,968 $10,128,213 $10,841,369 Rollover of Existing Equity --- --- Growth % --- (3.4%) 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% Existing Cash --- --- Total Sources $1,015,105 100.0% EBITDA 149,209 165,082 374,234 400,585 428,791 458,984 491,302 525,896 Margin % 2.0% 2.3% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% Uses $ amt Purchase of Equity $990,494 EBITA 142,494 161,019 366,644 392,995 421,201 451,393 483,712 518,306 Rollover of Existing Equity --- Margin % 1.9% 2.2% 4.8% 4.8% 4.8% 4.8% 4.8% 4.8% Rollover Existing Debt --- Legal & Advisory Expenses 14,857 CapEx --- 2,627 7,671 7,671 7,671 7,671 7,671 7,671 Financing Expenses 8,254 % of Revenue --- 0.0% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% Cash to Balance Sheet 1,500 Total Uses $1,015,105 Depreciation 6,715 4,063 7,590 7,590 7,590 7,590 7,590 7,590 % of CapEx --- 154.7% 98.9% 98.9% 98.9% 98.9% 98.9% 98.9% Exit Assumptions Years to Exit / Exit Year 3 2020 Profit before Taxes --- --- 317,944 356,682 400,199 451,393 483,712 518,306 LTM EBITDA Multiple 6.0x Taxes --- --- 127,178 142,673 160,080 180,557 193,485 207,322 LTM EBITDA $428,791 Tax Rate --- --- 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% Transaction Enterprise Value $2,572,748 EBITDA $--- $--- $374,234 $400,585 $428,791 $458,984 $491,302 $525,896 (+) Cash 30,477 (-) New Sr Debt Int Exp --- --- (32,191) (19,805) (4,494) --- --- --- (-) Transaction Expenses (1.5% of TEV) 38,591 (-) New Sub Debt Int Exp --- --- (16,508) (16,508) (16,508) --- --- --- (-) Debt --- (-) Taxes --- --- (127,178) (142,673) (160,080) (180,557) (193,485) (207,322) Fully-Diluted Equity Value $2,564,634 (+) (Inc) dec in NWC --- --- (127) 21,629 23,152 24,782 26,527 28,395 Preferred Equity Proceeds 429,421 (-) CapEx --- --- (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) Common Equity Proceeds 2,135,213 Free Cash Flow $--- $--- $190,559 $235,557 $263,190 $295,537 $316,673 $339,297 Price per common share $213.92 New Sr Debt --- 495,247 304,688 69,131 --- --- --- --- Accel-KKR Equity at Entry $354,776 New Sub Debt --- 165,082 165,082 165,082 --- --- --- --- Accel-KKR Ownership at Entry 100.0% Rollover Existing Debt --- --- --- --- --- --- --- --- Excess Cash --- --- --- --- 28,977 295,537 316,673 339,297 Accel-KKR Preferred Equity Proceeds 429,421 Accel-KKR Common Equity Proceeds 1,925,239 Ending Cash $--- $1,500 $1,500 $1,500 $30,477 $326,014 $642,687 $981,984 Accel-KKR Total Proceeds at Exit $2,354,660 Accel-KKR Economic Ownership at Exit 91.8% Total Debt / EBITDA --- 4.0x 1.3x 0.6x --- --- --- --- Gross Equity IRR 87.9% Gross Equity MOI 6.6x Gross Equity Capital Gain $1,999,884
Project [xxx] Management Case Returns Detail ($ in thousands) 'file:///var/filecabinet/temp/converter_assets/4a/51/4a51006e226ef9e0d9fd4a399b0d8539c1a8d69b.xlsx'#$Returns Detail Accel-KKR Gross Equity IRR 3-Year Exit (2020) LTM EBITDA Multiple At Exit --- 6.0x 7.0x 8.0x 9.0x 10.0x $990,494 6.0x 87.9% 97.5% 106.3% 114.4% 121.9% TEV and 1,155,576 7.0x 65.7% 74.1% 81.8% 88.8% 95.4% LTM EBITDA Multiple 1,320,658 8.0x 51.5% 59.1% 66.1% 72.5% 78.4% At Entry 1,485,741 9.0x 41.3% 48.4% 54.8% 60.7% 66.3% 1,650,823 10.0x 33.6% 40.2% 46.2% 51.8% 57.0% 5-Year Exit (2022) LTM EBITDA Multiple At Exit --- 6.0x 7.0x 8.0x 9.0x 10.0x $990,494 6.0x 55.7% 59.7% 63.3% 66.6% 69.7% TEV and 1,155,576 7.0x 44.4% 48.0% 51.3% 54.4% 57.2% LTM EBITDA Multiple 1,320,658 8.0x 36.8% 40.2% 43.3% 46.2% 48.9% At Entry 1,485,741 9.0x 31.1% 34.4% 37.4% 40.1% 42.7% 1,650,823 10.0x 26.7% 29.9% 32.7% 35.4% 37.8% Accel-KKR Gross Equity MOI 3-Year Exit (2020) LTM EBITDA Multiple At Exit --- 6.0x 7.0x 8.0x 9.0x 10.0x $990,494 6.0x 6.6x 7.7x 8.8x 9.9x 10.9x TEV and 1,155,576 7.0x 4.5x 5.3x 6.0x 6.7x 7.5x LTM EBITDA Multiple 1,320,658 8.0x 3.5x 4.0x 4.6x 5.1x 5.7x At Entry 1,485,741 9.0x 2.8x 3.3x 3.7x 4.2x 4.6x 1,650,823 10.0x 2.4x 2.8x 3.1x 3.5x 3.9x 5-Year Exit (2022) LTM EBITDA Multiple At Exit --- 6.0x 7.0x 8.0x 9.0x 10.0x $990,494 6.0x 9.2x 10.4x 11.6x 12.8x 14.1x TEV and 1,155,576 7.0x 6.3x 7.1x 7.9x 8.8x 9.6x LTM EBITDA Multiple 1,320,658 8.0x 4.8x 5.4x 6.0x 6.7x 7.3x At Entry 1,485,741 9.0x 3.9x 4.4x 4.9x 5.4x 5.9x 1,650,823 10.0x 3.3x 3.7x 4.1x 4.5x 5.0x Accel-KKR Gross Equity Capital Gain 3-Year Exit (2020) LTM EBITDA Multiple At Exit --- 6.0x 7.0x 8.0x 9.0x 10.0x $990,494 6.0x $1,999,884 $2,380,007 $2,760,131 $3,140,254 $3,520,378 TEV and 1,155,576 7.0x 1,854,282 2,234,406 2,614,529 2,994,653 3,374,776 LTM EBITDA Multiple 1,320,658 8.0x 1,708,681 2,088,804 2,468,928 2,849,051 3,229,175 At Entry 1,485,741 9.0x 1,563,079 1,943,202 2,323,326 2,703,449 3,083,573 1,650,823 10.0x 1,417,477 1,797,601 2,177,724 2,557,848 2,937,971 5-Year Exit (2022) LTM EBITDA Multiple At Exit --- 6.0x 7.0x 8.0x 9.0x 10.0x $990,494 6.0x $2,892,747 $3,328,286 $3,763,825 $4,199,364 $4,634,904 TEV and 1,155,576 7.0x 2,751,574 3,187,114 3,622,653 4,058,192 4,493,732 LTM EBITDA Multiple 1,320,658 8.0x 2,610,402 3,045,942 3,481,481 3,917,020 4,352,559 At Entry 1,485,741 9.0x 2,469,230 2,904,769 3,340,309 3,775,848 4,211,387 1,650,823 10.0x 2,328,058 2,763,597 3,199,136 3,634,676 4,070,215
ACCEL-KKR Page 3 of 7 15:28:12 12/18/2023 Project [xxx] Management Case Income Statement ($ in thousands) 'file:///var/filecabinet/temp/converter_assets/4a/51/4a51006e226ef9e0d9fd4a399b0d8539c1a8d69b.xlsx'#$Case1 FYE December 31 2016A 2017E 2018E 2019E 2020E 2021E 2022E 2023E License 7,460,063 7,207,361 7,714,851 8,258,076 8,839,551 9,461,968 10,128,213 10,841,369 Professional Services --- --- --- --- --- --- --- --- Total Revenue $7,460,063 $7,207,361 $7,714,851 $8,258,076 $8,839,551 $9,461,968 $10,128,213 $10,841,369 Cost of Revenue (ex-Depreciation) 1,874,432 1,954,220 1,690,007 1,809,005 1,936,382 2,072,728 2,218,675 2,374,898 Gross Profit 5,585,631 5,253,140 6,024,845 6,449,071 6,903,168 7,389,240 7,909,537 8,466,470 Sales & Marketing 3,306,527 2,911,598 2,998,885 3,210,045 3,436,073 3,678,017 3,936,997 4,214,212 Research & Development 1,108,046 1,160,608 1,638,291 1,753,647 1,877,126 2,009,300 2,150,781 2,302,223 General & Administrative 1,021,849 1,015,852 1,013,435 1,084,794 1,161,177 1,242,939 1,330,458 1,424,139 Total Operating Expenses 5,436,422 5,088,058 5,650,610 6,048,486 6,474,377 6,930,256 7,418,235 7,940,574 EBITDA 149,209 165,082 374,234 400,585 428,791 458,984 491,302 525,896 Depreciation 6,715 4,063 7,590 7,590 7,590 7,590 7,590 7,590 EBITA 142,494 161,019 366,644 392,995 421,201 451,393 483,712 518,306 CapEx --- 2,627 7,671 7,671 7,671 7,671 7,671 7,671 Revenue Growth % License (3.4%) 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% Professional Services --- --- --- --- --- --- --- Total Revenue (3.4%) 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% Gross Profit Margin % 74.9% 72.9% 78.1% 78.1% 78.1% 78.1% 78.1% 78.1% S&M, % of Revenue 44.3% 40.4% 38.9% 38.9% 38.9% 38.9% 38.9% 38.9% R&D, % of Revenue 14.9% 16.1% 21.2% 21.2% 21.2% 21.2% 21.2% 21.2% G&A, % of Revenue 13.7% 14.1% 13.1% 13.1% 13.1% 13.1% 13.1% 13.1% EBITDA Margin % 2.0% 2.3% 4.9% 4.9% 4.9% 4.9% 4.9% 4.9% EBIT Margin % 1.9% 2.2% 4.8% 4.8% 4.8% 4.8% 4.8% 4.8% D&A, % of CapEx --- 154.7% 98.9% 98.9% 98.9% 98.9% 98.9% 98.9% CapEx, % of Revenue --- 0.0% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% Working Capital Assumptions Inc (dec) in Revenue ($252,702) $507,491 $543,225 $581,475 $622,418 $666,244 $713,156 Inc (dec) in Net Working Capital (31,318) 127 (21,629) (23,152) (24,782) (26,527) (28,395) Inc (dec) in NWC, as % of Inc (dec) in Rev 12.4% 0.0% (4.0%) (4.0%) (4.0%) (4.0%) (4.0%) Net Working Capital (275,982) (307,300) (307,173) (328,802) (351,953) (376,735) (403,262) (431,657) Accounts Receivable --- --- --- --- --- --- --- --- Other Current Assets 90,058 65,773 81,769 87,527 93,690 100,287 107,348 114,907 Accounts Payable --- --- --- --- --- --- --- --- Deferred Revenue --- --- --- --- --- --- --- --- Other Current Liabilities 366,040 373,073 388,942 416,328 445,643 477,022 510,611 546,564 DSOs --- --- --- --- --- --- --- --- Other Curr Assets, % of Rev 1.2% 0.9% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% Cost of Revenue 1,874,432 1,954,220 1,690,007 1,809,005 1,936,382 2,072,728 2,218,675 2,374,898 DPOs --- --- --- --- --- --- --- --- Deferred Revenue --- --- --- --- --- --- --- --- Other Curr Liabilities, % of Rev 4.9% 5.2% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
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ACCEL-KKR Page 4 of 7 15:28:12 12/18/2023 Project [xxx] Accel-KKR Case Income Statement ($ in thousands) 'file:///var/filecabinet/temp/converter_assets/4a/51/4a51006e226ef9e0d9fd4a399b0d8539c1a8d69b.xlsx'#$Case2 FYE December 31 2016A 2017E 2018E 2019E 2020E 2021E 2022E 2023E License 7,460,063 7,207,361 --- --- --- --- --- --- Professional Services --- --- --- --- --- --- --- --- Total Revenue $7,460,063 $7,207,361 $--- $--- $--- $--- $--- $--- Cost of Revenue (ex-Depreciation) 1,874,432 1,954,220 --- --- --- --- --- --- Gross Profit 5,585,631 5,253,140 --- --- --- --- --- --- Sales & Marketing 3,306,527 2,911,598 --- --- --- --- --- --- Research & Development 1,108,046 1,160,608 --- --- --- --- --- --- General & Administrative 1,021,849 1,015,852 --- --- --- --- --- --- Total Operating Expenses 5,436,422 5,088,058 --- --- --- --- --- --- EBITDA 149,209 165,082 --- --- --- --- --- --- Depreciation 6,715 4,063 --- 7,590 7,590 7,590 7,590 7,590 EBITA 142,494 161,019 --- (7,590) (7,590) (7,590) (7,590) (7,590) CapEx --- 2,627 --- 7,671 7,671 7,671 7,671 7,671 Revenue Growth % License --- (3.4%) (100.0%) 7.0% 7.0% 7.0% 7.0% 7.0% Professional Services --- --- --- --- --- --- --- --- Total Revenue --- (3.4%) (100.0%) --- --- --- --- --- Gross Profit Margin % 74.9% 72.9% --- 78.1% 78.1% 78.1% 78.1% 78.1% S&M, % of Revenue 44.3% 40.4% --- 38.9% 38.9% 38.9% 38.9% 38.9% R&D, % of Revenue 14.9% 16.1% --- 21.2% 21.2% 21.2% 21.2% 21.2% G&A, % of Revenue 13.7% 14.1% --- 13.1% 13.1% 13.1% 13.1% 13.1% EBITDA Margin % 2.0% 2.3% --- --- --- --- --- --- EBIT Margin % 1.9% 2.2% --- --- --- --- --- --- D&A, % of CapEx --- 154.7% --- 98.9% 98.9% 98.9% 98.9% 98.9% CapEx, % of Revenue --- 0.0% --- --- --- --- --- ---
ACCEL-KKR Page 5 of 7 15:28:12 12/18/2023 Project [xxx] Case 3 Income Statement ($ in thousands) 'file:///var/filecabinet/temp/converter_assets/4a/51/4a51006e226ef9e0d9fd4a399b0d8539c1a8d69b.xlsx'#$Case3 FYE December 31 2016A 2017E 2018E 2019E 2020E 2021E 2022E 2023E License 7,460,063 7,207,361 --- --- --- --- --- --- Professional Services --- --- --- --- --- --- --- --- Total Revenue $7,460,063 $7,207,361 $--- $--- $--- $--- $--- $--- Cost of Revenue (ex-Depreciation) 1,874,432 1,954,220 --- --- --- --- --- --- Gross Profit 5,585,631 5,253,140 --- --- --- --- --- --- Sales & Marketing 3,306,527 2,911,598 --- --- --- --- --- --- Research & Development 1,108,046 1,160,608 --- --- --- --- --- --- General & Administrative 1,021,849 1,015,852 --- --- --- --- --- --- Total Operating Expenses 5,436,422 5,088,058 --- --- --- --- --- --- EBITDA 149,209 165,082 --- --- --- --- --- --- Depreciation 6,715 4,063 --- 7,590 7,590 7,590 7,590 7,590 EBITA 142,494 161,019 --- (7,590) (7,590) (7,590) (7,590) (7,590) CapEx --- 2,627 --- 7,671 7,671 7,671 7,671 7,671 Revenue Growth % License --- (3.4%) (100.0%) 7.0% 7.0% 7.0% 7.0% 7.0% Professional Services --- --- --- --- --- --- --- --- Total Revenue --- (3.4%) (100.0%) --- --- --- --- --- Gross Profit Margin % 74.9% 72.9% --- 78.1% 78.1% 78.1% 78.1% 78.1% S&M, % of Revenue 44.3% 40.4% --- 38.9% 38.9% 38.9% 38.9% 38.9% R&D, % of Revenue 14.9% 16.1% --- 21.2% 21.2% 21.2% 21.2% 21.2% G&A, % of Revenue 13.7% 14.1% --- 13.1% 13.1% 13.1% 13.1% 13.1% EBITDA Margin % 2.0% 2.3% --- --- --- --- --- --- EBIT Margin % 1.9% 2.2% --- --- --- --- --- --- D&A, % of CapEx --- 154.7% --- 98.9% 98.9% 98.9% 98.9% 98.9% CapEx, % of Revenue --- 0.0% --- --- --- --- --- ---
ACCEL-KKR Page 6 of 7 15:28:12 12/18/2023 Project [xxx] Management Case Discounted Cash Flow Analysis ($ in thousands) 'file:///var/filecabinet/temp/converter_assets/4a/51/4a51006e226ef9e0d9fd4a399b0d8539c1a8d69b.xlsx'#$DCF Assumptions WACC Current date 12/18/2023 Average Tax- Weighted Initial Average Average Weighted Tax rate 40.0% $ Amount Cost Effected Tax-Eff. Cost $ Amount Amount Cost Cost Debt $660,329 7.77% 4.66% 3.03% New Sr Debt $495,247 $144,844 6.50% 4.14% Equity 354,776 25.00% 25.00% 8.74% New Sub Debt 165,082 82,541 10.00% 3.63% Total $1,015,105 Average Cost of Debt $660,329 $227,386 7.77% Weighted Average Cost of Capital 11.77% DISCOUNTED CASH FLOW VALUATION FYE December 31 CAGR 2017A 2018E 2019E 2020E 2021E 2022E 2023E '17A-'22E '18A-'22E EBITDA $165,082 $374,234 $400,585 $428,791 $458,984 $491,302 $525,896 24.37% 7.04% Depreciation 4,063 7,590 7,590 7,590 7,590 7,590 7,590 EBITA 161,019 366,644 392,995 421,201 451,393 483,712 518,306 24.61% 7.17% Taxes --- 127,178 142,673 160,080 180,557 193,485 207,322 Net Operating Profit After Tax 161,019 239,466 250,322 261,121 270,836 290,227 310,983 12.51% 4.92% (+) Depreciation 4,063 7,590 7,590 7,590 7,590 7,590 7,590 (+) (Inc) dec in NWC --- (127) 21,629 23,152 24,782 26,527 28,395 (-) CapEx --- (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) Unlevered Free Cash Flow $165,082 $239,258 $271,870 $284,192 $295,537 $316,673 $339,297 13.92% 7.26% % growth 44.93% 13.63% 4.53% 3.99% 7.15% 7.14% Illustrative Present Value as of December 18, 2023 Terminal Value at 2022 Discount rate 9.77% 11.77% 13.77% NTM (2023E) EBITDA multiple 5.0x 6.0x 7.0x 5.0x 6.0x 7.0x 5.0x 6.0x 7.0x 2023E EBITDA $525,896 PV of Finite UFCF $4,488,690 $4,488,690 $4,488,690 $5,630,377 $5,630,377 $5,630,377 $7,038,524 $7,038,524 $7,038,524 NTM Terminal % of Enterprise Value 40.26% 35.96% 32.50% 41.39% 37.04% 33.53% 42.52% 38.13% 34.57% EBITDA Value at PV of Terminal Value $6,660,348 $7,992,417 $9,324,487 $7,974,001 $9,568,801 $11,163,601 $9,516,320 $11,419,584 $13,322,848 Mult. 2022 % of Enterprise Value 59.74% 64.04% 67.50% 58.61% 62.96% 66.47% 57.48% 61.87% 65.43% 5.0x $2,629,480 Enterprise Value $11,149,037 $12,481,107 $13,813,176 $13,604,377 $15,199,177 $16,793,978 $16,554,844 $18,458,107 $20,361,371 6.0x $3,155,376 (-) Net Debt --- --- --- --- --- --- --- --- --- 7.0x $3,681,272 FD Equity Value $11,149,037 $12,481,107 $13,813,176 $13,604,377 $15,199,177 $16,793,978 $16,554,844 $18,458,107 $20,361,371 Enterprise Value / 2018E EBITDA 29.8x 33.4x 36.9x 36.4x 40.6x 44.9x 44.2x 49.3x 54.4x Implied perp. growth rate of UFCF (2.03%) (0.24%) 1.08% (0.24%) 1.58% 2.92% 1.54% 3.39% 4.76%
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ACCEL-KKR Page 7 of 7 15:28:12 12/18/2023 Project [xxx] Management Case [xxx] ($ in thousands) 'file:///var/filecabinet/temp/converter_assets/4a/51/4a51006e226ef9e0d9fd4a399b0d8539c1a8d69b.xlsx'#$Blank

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Use attachment to answer question    q3- This question relates to the diagram, which shows the NPV profile for Projects X and Y. What is the Internal Rate of Return of Project X? Select one: a. 13% b. 9% c. 4% d. 10%
Use attachment to answer question    q2- This question relates to the diagram, which shows the NPV profile for Projects X and Y. At what cost of capital are we indifferent between Projects X and Y? Select one: a. 13% b. 4% c. 10% d. 9%
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i need the correct excel input for the NPV
A firm is considering the following independent projects.       Project         Investment    Present value offuture cash flows       NPV        A $130  $176 $46 B $103   $115 $12 C $183   $287 $104 D $161   $199 $38 E $184  $273  $89   What is the Profitability Index of Project B? Question 5Answer a. 0.85 b. 1.12 c. 0.89 d. 1.18
NPV and project selection   Project A Project B       initial investment -50000 -60000       Year 1 5000 4000       Year 2 6000 7000       Year 3 7000 14000       Year 4 9000 13000       Year 5 4000 4000       Year 6 9000 9000       Year 7 5000 10000       Year 8 8000 8000       Year 9 9000 9000       Year 10 5000 7000         Calculate the NPV of each project with a 4% discount rate. Which project(s) will be undertaken if all are mutually exclusive (still 4% discount)? Which project(s) will be undertaken if all are independent and the firm only has $125k in available capital (still 4% discount)? Which projects will be undertaken if all are independent and the firm’s cost of capital is 3%? Please do in Excel and show steps
You have been given the following return data, on three assets-A, B, and C-over the period 2021-2024. Using these assets, you have isolated three investment alternatives: a. Calculate the average portfolio return for each of the three alternatives. b. Calculate the standard deviation of returns for each of the three alternatives. c. On the basis of your findings in parts a and b, which of the three investment alternatives would you recommend? Why? OCTOB a. Calculate the portfolio return over the 4-year period for each of the 3 alternatives. Alternative 1: 7.00% (Round to two decimal places.) Alternative 2: 7.00% (Round to two decimal places) Alternative 3: 7.00% (Round to two decimal places.) b. Calculate the standard deviation of returns over the 4-year period for each of the 3 alternatives. Alternative 1: % (Round to three decimal places)
please be soecific w answer pls complete the box
ch A project with an initial investment of $88000 and a profitability index of 1.239 also has an internal rate of return of 12%. The present value of net cash flows is O $71025. O $98560. O $88000. O $109032. Save for Later O Et V B 21 E 7 Attempts: 0 of 1 used Submit Answer F12
Net Present Value versus Profitability Index Consider the following two mutually exclusive projects available to Global Investments, Inc.:   C0 C1 C2 Profitability Index NPV A -$1,000 -$1,000 $500 1.32 $322 B -500 500 400 1.57 285 The appropriate discount rate for the projects is 10 percent. Global Investments chose to undertake Project A. At a luncheon for shareholders, the manager of a pension fund that owns a substantial amount of the firm’s stock asks you why the firm chose Project A instead of Project B when Project B has a higher profitability index. How would you, the CFO, justify your firm’s action? Are there any circumstances under which Global Investments should choose Project B?
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what should i put for the blank my cursor is on and can i get feedback on the red x’s
Based on the information of four investment proposals, rank the proposals in terms of NPV index.   A. 3, 2, 1, 4B. 2, 3, 1, 4C.2, 1, 3, 4D. 4,  1, 2, 3
Home NPV-Mutually exclusive projects Hook Industries is considering the replacement of one of its old metal stamping machines. Three alternative replacement machines are under consideration. The relevant cash flows associated with each are shown in the following table: . The firm's cost of capital is 14%. se Options a. Calculate the net present value (NPV) of each press. b. Using NPV, evaluate the acceptability of each press. c. Rank the presses from best to worst using NPV. d. Calculate the profitability index (PI) for each press. e. Rank the presses from best to worst using PI. ar a. The NPV of press A is $ (Round to the nearest cent.) The NPV of press B is $ (Round to the nearest cent.) The NPV of press C is $ (Round to the nearest cent.) b. Based on NPV, Hook Industries should V press A. (Select from the drop-down menu.) Based on NPV, Hook Industries should V press B. (Select from the drop-down menu.) Enter your answer in each of the answer boxes. P Type here to search hp
USF x My Home CengageNOWv2 | Online teachir X agenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker =&takeAssignmentSessionLocator=&inpro... to 田 Sunrise Inc. is considering a capital investment proposal that costs $227,500 and has an estimated life of 4 years and no residual value. The estimated net cash flows are as follows: Year Net Cash Flow 1 $97,500 2. 80,000 3 60,000 4 40,000 The minimum desired rate of return for net present value analysis is 10%. The factors for the present value of $1 at the compound interest rate of 10% for 1, 2, 3, and 4 years are 0.909, 0.826, 0.751, and 0.683, respectively. Determine the net present value. Round interim answers to the nearest dollar. Enter a negative value as negative number.
(3) At what discount rate do the profiles cross? NPV of Projects WACC L S $18.78 $19.98 0% 18.78 19.98 5% 18.78 19.98 10% 18.78 19.98 15% 18.78 19.98 20% 18.78 19.98 25% 18.78 19.98 Year CF Difference 0 1 2 3 IRR Crossover rate = =
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