Question

how to do #13 in excel

0133020312.pdf X C Get Homework Help With Chex University of the Virgin Islands x Bb Chapter 10 Capital Budgeting C Solved: (IRR calculation) Deter x + - 0 X → blackboard.uvi.edu/bbcswebdav/pid-416370-dt-content-rid-14910461_1/courses/FIN301_FallSemester 2019_1_87473/Foundations-of-Finance-8th-Edition.pdf 0133020312.pdf 365/549 10-13. (NPV calculation) Calculate the NPV given the following cash flows if the appropriate re- quired rate of return is 10%. YEAR CASH FLOWS -$60,000 20,000 20,000 10,000 10,000 30,000 30,000 Should the project be accepted? 10-14. (NPV calculation) Calculate the NPV given the following cash flows if the appropriate re- quired rate of return is 10%. YEAR .-NM7io CASH FLOWS -$70,000 30,000 30,000 30,000 -30,000 30,000 30,000 Should the project be accepted? 10-15. (MIRR calculation) Calculate the MIRR given the following cash flows if the appropriate required rate of return is 10% (use this as the reinvestment rate). FIN 301 Spreadsh...xlsx A FIN 301 Spreadsh...xlsx A F IN 301 Spreadsh...xlsx Show all X ^ * 7:57 PM 11/21/2019 55

Answer 1

NPV = PV of Cash Inflows - PV of Cash Outflows

Part A:

Year	CF	PVF @10%	Disc CF
0	$ -60,000.00	1.0000	$ -60,000.00
1	$ 20,000.00	0.9091	$ 18,181.82
2	$ 20,000.00	0.8264	$ 16,528.93
3	$ 10,000.00	0.7513	$    7,513.15
4	$ 10,000.00	0.6830	$    6,830.13
5	$ 30,000.00	0.6209	$ 18,627.64
6	$ 30,000.00	0.5645	$ 16,934.22
NPV			$ 24,615.88

Project can be accepted as it has +ve NPV.

Part B:

Year	CF	PVF @10%	Disc CF
0	$ -70,000.00	1.0000	$ -70,000.00
1	$ 30,000.00	0.9091	$ 27,272.73
2	$ 30,000.00	0.8264	$ 24,793.39
3	$ 30,000.00	0.7513	$ 22,539.44
4	$ -30,000.00	0.6830	$ -20,490.40
5	$ 30,000.00	0.6209	$ 18,627.64
6	$ 30,000.00	0.5645	$ 16,934.22
NPV			$ 19,677.01

Project can be accepted as it has +ve NPV.