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Using excel, calculate the payback period, NPV and IRR for each project

Using excel, calculate the payback period, NPV and IRR for each project

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Main Capital Incorporated is considering two mutually exclusive projects. The company s discount rate is 10% and its payback period is 3 years. Using excel, calculate the payback period, NPV and IRR for each project. Determine whether Main Capital should accept or reject the projects under each technique. Explain why.\table[[Cash Flows, Project A, Project B], [Initial cash outflow, -400.000,-600.000

Cash Flows Initial cash outflow Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Project A -400,000 55,000 55,000 55,000 225,000 225,000 Project B -600,000 300,000 300,000 50,000 50,000 49,000
Transcribed Image Text:Cash Flows Initial cash outflow Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Project A -400,000 55,000 55,000 55,000 225,000 225,000 Project B -600,000 300,000 300,000 50,000 50,000 49,000
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