A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 Project A -$300 Project B -$405 -$387 -$193 $133 $133 -$100 $600 $133 $133 $600 $133 $850 $133 -$180 $0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: $ 162.48 Project B: $ b. What is each project's IRR? Round your answer to two decimal places. Project A: 18.10 % Project B: %
A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 Project A -$300 Project B -$405 -$387 -$193 $133 $133 -$100 $600 $133 $133 $600 $133 $850 $133 -$180 $0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: $ 162.48 Project B: $ b. What is each project's IRR? Round your answer to two decimal places. Project A: 18.10 % Project B: %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Excel Online Structured Activity: Capital budgeting criteria
A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:
0
1
2
3
4
5
6
7
+
Project A
-$300 -$387
Project B -$405 $133
-$193 -$100
$133 $133
$600
$133
$600
$133
$850
-$180
$133
$0
The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
X
Open spreadsheet
a. What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
Project A: $
162.48
Project B: $
b. What is each project's IRR? Round your answer to two decimal places.
Project A:
18.10
%
Project B:
%
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