please solve using excel formula 1.Consider the project with the followingexpected cash flows:Yea Cashrflow0 $200,001+50,0002+50,0003$200,00a.If the discount rate is 0%, what is theproject's net present value?b.If the discount rate is 5%, what is theproject's net present value?c. What is this project's internal rate ofreturn?d.If the reinvestment rate is 5%, what is thisproject's modified internal rate of return?

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Answered: a. If the discount rate is 0%, what is…

a. If the discount rate is 0%, what is the project's net present value? b.lf the discount rate is 5%, what is the project's net present value? c. What is this project's internal rate of return?

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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Question

100%

please solve using excel formula

1.Consider the project with the following
expected cash flows:
Yea Cash
r
flow
0 $200,00
1
+50,000
2
+50,000
3
$200,00
a.If the discount rate is 0%, what is the
project's net present value?
b.If the discount rate is 5%, what is the
project's net present value?
c. What is this project's internal rate of
return?
d.If the reinvestment rate is 5%, what is this
project's modified internal rate of return?

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