Please explain thoroughly using Excel and show formulas. Consider the following projects. Project C0 C1 C2 C3 C4 C5 A -1,000 +1,000 0 0 0 0 B -2,000 +1,000 +1,000 +4,000 +1,000 +1,000 C -3,000 +1,000 +1,000 0 +1,000 +1,000 Assume that this firm’s  beta= 1.5  The expected market return is 12%.  The risk free rate is 2.5%.  This company can borrow debt at 5.2%.  The firm has $5 billion in debt. It has 6 billion shares outstanding  at $3 price/shr.  The corporate tax rate (Tc) = 21% Question: What is the NPV of project B ? Multiple Choice   A. The NPV for project B is $2,158 B. The NPV for project B is -$128 C. The NPV for project B is $3,458 D. The NPV for project B is -$122

Below are four cases that you will have to solve using Excel spreadsheets. 2nd case The COMPETIDORA SA company has the possibility of investing in three different projects . The projections show us the following information on which a decision must be made: PROJECT X Y Initial Z$310,000 It is requested: investment $180,000 $250,000 Year 1 cash flows $50,000 $80,000 $150,000 1. Determine the internal rate of return. 2. Determine the present value. Year 2 cash flows 3. Determine the recovery period. 4. Define which is the most viable project. $70,000 $80,000 $120,000 The discount rate for the project will be 9% and the investors propose a MARR of 22%. Year 3 cash flows $80,000 $80,000 $100,000 Year 4 cash flows $100,000 $80,000

USE EXCEL TO SHOW FORMULAS   Elizabeth Corporation is starting two new projects. Project A requires an investment of $5,000, has expected return of 16% with standard deviation 14%. Project B has initial investment of $15,000, expected return of 15% with standard deviation 10%. The correlation coefficient between the projects is 0.75.   1- Find the expected return, in dollars, of the portfolio of these two projects.   2- What is the probability that this return is less than $4,000?

There are two projects, A and B. the following probability distribution for the projects are given below A B Initial Investment $9,000 $9,000 Annual rate of return Return Prob. Return Prob. Pessimistic 9% 0.25 11% 0.30 Most Likely 15 0.50 18 0.45 Optimistic 25 0.25 23 0.25 a. Compute expected rate of return for each project. b. Compute variance and standard deviation of rate of return for each project. c. compute the coefficient of variance. Which project should you take? C.