The Sloan Corporation is trying to choose between the following two mutually exclusive design projects. If the required return is 10 percent, what is the profitability index for each project? What is the NPV for each project? Complete the following analysis. Do not hard code values in your calculations. You must use the built-in excel function to answer this question. Annual Cash Flows I II 0 $ (51,000.00) $ (14,000.00) 1 $ 24,800.00 $ 7,800.00 2 $ 24,800.00 $ 7,800.00 3 $ 24,800.00 $ 7,800.00 Required Return 10% Profitability index (I)_________________ Profitability index(II)_________________ NPV (I) ______________ NPV (II) ______________
The Sloan Corporation is trying to choose between the following two mutually exclusive design projects. If the required return is 10 percent, what is the profitability index for each project? What is the NPV for each project? Complete the following analysis. Do not hard code values in your calculations. You must use the built-in excel function to answer this question. Annual Cash Flows I II 0 $ (51,000.00) $ (14,000.00) 1 $ 24,800.00 $ 7,800.00 2 $ 24,800.00 $ 7,800.00 3 $ 24,800.00 $ 7,800.00 Required Return 10% Profitability index (I)_________________ Profitability index(II)_________________ NPV (I) ______________ NPV (II) ______________
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The Sloan Corporation is trying to choose between the following two mutually exclusive design projects. If the required return is 10 percent, what is the profitability index for each project? What is the NPV for each project? Complete the following analysis. Do not hard code values in your calculations. You must use the built-in excel function to answer this question.
Annual Cash Flows | I | II |
0 | $ (51,000.00) | $ (14,000.00) |
1 | $ 24,800.00 | $ 7,800.00 |
2 | $ 24,800.00 | $ 7,800.00 |
3 | $ 24,800.00 | $ 7,800.00 |
Required Return | 10% |
Profitability index (I)_________________
Profitability index(II)_________________
NPV (I) ______________
NPV (II) ______________
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