Compute appropriate net present value, Finance Basics

Imagine Joy is the project coordinator in a company where four projects are running concurrently. He's employed you as the senior business analyst to perform some financial calculations for him. Below are specific instructions on how to prepare a report for Joy.

  • A2: Project 1
  • A3: Project 2
  • B1: Time
  • C1:I1: 1 2 3 4 5 6 7
  • C2:I2 → -400 200 600 -900 1000 250 230 (cash flow amounts)
  • C3:I3 → -200 150 150 200 300 100 80 (cash flow amounts)
  • J1: NPV (r=0.2)
  • K1: NPV (r=0.01)
  • Compute appropriate NPV's in J2, J3, K2, K3. Format this in blue.
  • B4: IRR Proj 1 No Guess
  • C4: IRR Proj 2 No Guess
  • In B5 and C5, compute the no-guess IRR's.
  • Add a comment in B5 explaining what this # signifies.
  • Next, Joy wants to check if Project 1 and 2 have more than one IRR. Set up a schedule to check this. Use the spreadsheet area between rows 7-19 to do your work. Use appropriate headings. If more than one IRR, format them in red.
  • A20: Project 3
  • B20:E20 → -20 82 -60 2 (cash flow amounts)
  • C21: Plain IRR
  • Compute the no-guess IRR in D21.
  • Now, Joy wants you to check if Project 3 has a unique IRR. Set up a schedule to check this. Use the spreadsheet area below rows 21 to do your work. Use appropriate headings. If there's a unique IRR, format them in yellow. Else, flag in red.
  • A36: Project 4
  • B36:D36 → 10 -30 35 (cash flow amounts)
  • Finally, Joy wants you to check if Project 4 has an IRR at all. Set up a schedule to check this. Use the spreadsheet area below rows 36 to do your work. Use appropriate headings. If there's an IRR, format them in blue. Else, flag the results in red.

 

Posted Date: 2/23/2013 2:28:14 AM | Location : United States







Related Discussions:- Compute appropriate net present value, Assignment Help, Ask Question on Compute appropriate net present value, Get Answer, Expert's Help, Compute appropriate net present value Discussions

Write discussion on Compute appropriate net present value
Your posts are moderated
Related Questions
A City has determined that building a new water distribution system using a new source of water would have an annual costs of $5,750,000 and annual net benefits of $4,250,000. The


Last year Nymphe Technologies had $450 million of sales and $270 million of fixed assets, so its FA/Sales ratio was 60%.  However, its fixed assets were used at only 75% of capacit


traditional financial management are concerned with raising funds and optimum utilisation.do you agree?explain.

Bill Smith, a manager of a restaurant/bar in Los Angele, is in the 25% marginal tax bracket and pays additional 5% in taxes to the state of California. Bill has 20,000 invested in


Functions of the Financial Markets Functions of the Financial Markets or Institutions in Economy 1. Allocation of financial resources to the mainly productive units. Saving

Do your experts provide Future Value of Single or Multiple Cash Flows assignment help? I need urgent help in my college assignment.

Consider an economy with three dates {t=0, 1, 2}. A firm has assets in place that generate an output (profit) of either 40 in state L or 160 in state H at t=2. Bothe states equally