ComputerAssignment3 - *Recall: The NPV function has a flaw....

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FINC 3630 Computer Assignment 3 Email to Dr. Yost with the subject: FINC 3630 Computer Assignment #3 Due: Wednesday, June 15th (emailed to Dr. Yost before the start of class) ****All work must be YOUR OWN. You may not share spreadsheets!**** Instructions: Put your name in the header! In cell A6, type the following: I have neither given nor received help on this assignment. All work is my own. In this spreadsheet you will use the cash flows from the projects to find NPV, IRR, and MIRR (using Excel functions!). You will also graph NPV profiles of both projects and interpret the results. Use ONLY cell references for each calculation! Do not insert numbers! Make sure your spreadsheet looks great with all $ and % formatted well (with at least two decimal places). INPUTS Required rate 10% Year 0 1 2 3 4 5 Cash Flows Project 1 ($12,000) $3,500 $3,500 $3,500 $3,500 $3,500 Cash Flows Project 2 ($12,000) $6,500 $5,500 $2,000 $1,000 $500 Use the NPV, IRR and MIRR functions to find these numbers for each project below (these are financial functions).
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Unformatted text preview: *Recall: The NPV function has a flaw. You must find the NPV of Cash Flows 1-5 and then add CF0. To find Modified IRR, use the required rate as both the reinvestment rate and the finance rate. OUTPUTS NPV IRR MIRR Project 1 Project 2 Find the NPV's of the projects at the following rates. Required Rate 0% 5% 10% 15% 20% 25% NPV Project 1 NPV Project 2 Graph the NPV Profiles of both projects on the same graph. Use a line chart with markers. Label graph well and insert it in the space below. Point out the IRR's of the projects and the crossover point (using arrows and lines). Calculate the crossover rate (with at least 2 decimals) and enter it the next row. You can do this on a separate piece of paper or in a separate spreadsheet. If projects 1 and 2 are mutually exclusive, at what range of required rates would you accept each project? Preview page, make sure it looks great. Format it to print on ONE page (do not delete anything)....
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This note was uploaded on 12/11/2011 for the course FINC 3630 taught by Professor Jensen,m during the Summer '08 term at Auburn University.

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