pEASE DO NOT USE AN EXCEL SPREAD SHEET i NEED TO UNDERSTAND YOUR STEPS Please pr

ID: 2723906 • Letter: P

Question

pEASE DO NOT USE AN EXCEL SPREAD SHEET i NEED TO UNDERSTAND YOUR STEPS

Please provide a formular for me to follow example PVF ....

I also need a graph or a time line profile 13. NPV versus IRR. Here are the cash flows for two mutually exclusive projects: (LO8-1 and LO8-2)

Project

C0 C1 C2 C3

A -$20,000 +$8,000 +$8,000 +$ 8,000

B - 20,000 0 0 + 25,000

a. At what interest rates would you prefer project A to B? ( Hint: Try drawing the NPV profile of each project.) .

b.What is the IRR of each project?

This is my second request I can not understand the spread sheet on excel

We will first find the IRR of each project using excel

We use the IRR function to find the IRR, the IRR is calculated using =irr(cash_flow)

The IRR of project A is aas follows

The IRR for project B is as follows:

(a) At no point in time would we prefer project A over project B since IRR of B is lower tha that of A and we would always prefer B over A

(b) The IRR of A is : 9.70% and IRR of B is 7.72%

Project A 0 -20000 1 8000 2 8000 3 8000 IRR 9.70%

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