Can you please use the formulas in Excel. 15. Note the following information on two mutually exclusive projects under consideration by Wang For Years A 0 ($30,000) 1 2 3 4 5 B ($60,000) $10,000 $20,000 $10,000 $20,000 $10,000 $20,000 $10,000 $20,000 $10,000 $20,000

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Can you please use the formulas in Excel.
15. Note the following information on two mutually exclusive projects under consideration by Wang Food Markets, Inc.
Years A
0
1
2
3
4
5
B
($30,000)
($60,000)
$10,000
$20,000
$10,000 $20,000
$10,000
$20,000
$10,000 $20,000
$10,000
$20,000
Wang requires a 14 percent rate of return on projects of this nature.
a. Compute the NPV of both projects.
b. Compute the internal rate of return on both projects.
c. Compute the profitability index of both projects.
d. Compute the payback period on both projects.
e. Which of the two projects, if either, should Wang accept? Why?
Transcribed Image Text:Can you please use the formulas in Excel. 15. Note the following information on two mutually exclusive projects under consideration by Wang Food Markets, Inc. Years A 0 1 2 3 4 5 B ($30,000) ($60,000) $10,000 $20,000 $10,000 $20,000 $10,000 $20,000 $10,000 $20,000 $10,000 $20,000 Wang requires a 14 percent rate of return on projects of this nature. a. Compute the NPV of both projects. b. Compute the internal rate of return on both projects. c. Compute the profitability index of both projects. d. Compute the payback period on both projects. e. Which of the two projects, if either, should Wang accept? Why?
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