Homework Helper

Not Rated (0)

$17/per page/

About Homework Helper

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Accounting,Applied Sciences See all
Accounting,Applied Sciences,Art & Design,Chemistry,Economics,Essay writing Hide all
Teaching Since: Apr 2017
Last Sign in: 419 Weeks Ago, 3 Days Ago
Questions Answered: 3232
Tutorials Posted: 3232

Education

  • MBA,MCS,M.phil
    Devry University
    Jan-2008 - Jan-2011

  • MBA,MCS,M.Phil
    Devry University
    Feb-2000 - Jan-2004

Experience

  • Regional Manager
    Abercrombie & Fitch.
    Mar-2005 - Nov-2010

  • Regional Manager
    Abercrombie & Fitch.
    Jan-2005 - Jan-2008

Category > Business & Finance Posted 17 May 2017 My Price 12.00

Gardial Fisheries is considering two mutually exclusive investments

Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows:

  
                     
   

Expected Net Cash Flows

              
 

Time

Project A

Project B

              
 

0

($375)

($575)

              
 

1

($300)

$190

              
 

2

($200)

$190

              
 

3

($100)

$190

              
 

4

$600

$190

              
 

5

$600

$190

              
 

6

$926

$190

              
 

7

($200)

$0

              
                     

a.   If each project's cost of capital is 11%, which project should be selected? If the cost of capital is 17%, what project is the proper choice?

  
 
                     

@ 11% cost of capital

  

@ 17% cost of capital

            
         

Use Excel's NPV function as explained in this chapter's Tool Kit. Note that the range does not include the costs, which are added separately.

  

WACC =

11%

  

WACC =

17%

  
           

NPV A =

$269.34

  

NPV A =

$48.26

  
                     

NPV B =

$228.80

  

NPV B =

$106.95

            
                     
                     

b.   Construct NPV profiles for Projects A and B.

            
                     

Before we can graph the NPV profiles for these projects, we must create a data table of project NPVs relative to differing costs of capital.

  
 
                     
 

Project A

Project B

                
 

$269.34

$228.80

                

0%

                    

2%

                    

4%

                  

6%

                

8%

                

10%

                    

12%

                    

14%

                    

16%

                  

18%

                

20%

                

22%

                    

24%

                    

26%

                    

28%

              
 
   

30%

                    
 
 

HOW DO I DO PART B IN EXCEL????

Answers

Homework Helper
Not Rated (0)
Status NEW Posted 17 May 2017 08:05 AM My Price 12.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k Y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l

Not Rated(0)