Compute appropriate net present value, Finance Basics

Assignment Help:

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.

 


Related Discussions:- Compute appropriate net present value

Example of eoq assumptions, Example of EOQ Assumptions ABC Ltd require...

Example of EOQ Assumptions ABC Ltd requires 2,000 units of a component in its manufacturing method in the coming year that costs of Sh.50 each. The items are obtainable locall

Acceptance rule of irr, Acceptance Rule of IRR IRR will accept a ventu...

Acceptance Rule of IRR IRR will accept a venture if its IRR is higher than or equivalent to the minimum required rate of return such is usually the cost of finance also recogn

Calculate the retrospective gross premium reserve, Question: A deferred...

Question: A deferred annuity policy is sold to a life aged 45 with the following benefits: • Basic payments start at $30,000 from age 65, increasing by $2,000 each year; •

capm model is not suitable in an international setting, Why do several cri...

Why do several critics say the CAPM model is not suitable in an international setting? Please describe a way that the CAPM model could be adapted for international applications.

Social responsibility - objectives of business entity, Social responsibilit...

Social responsibility - Objectives of Business Entity The firm must decide where to operate strictly in their shareholders' best interests or be responsible to their staff, th

Tests of term structure of interest rates theories, Tests of Term Structure...

Tests of Term Structure of Interest Rates Theories Various tests have been conducted mainly in USA and they show that all the three (3) theories have some validity and therefo

Necessity of risk adjusted hurdle rates for companies, Discuss the necessit...

Discuss the necessity of risk adjusted hurdle rates for companies with diverse lines of business. Every company invests in new projects based on the expectation of earnings

Cash flow statement, how to calculate cash flow? What components are requir...

how to calculate cash flow? What components are required to calculate it ?

What is bond rate, What is Bond Rate It is interest rate received on...

What is Bond Rate It is interest rate received on the face value or the par value of the bond. If a company or government issues a 10-year bond with 100$ as face value and 1

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd