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NPV Project 1 Project 2 Net Cash Net Cash Flow Flow Year 0 1 2 3 4 5 (2,500) 1000 500 600 1000 900 (2,750) 900 700 800 600 600 10% factors NPV of NPV...

I have done most of teh question below - just need help with the IRR calc.... Spreadsheet attached


BLC Inc. is a medium-sized manufacturing company based in the UK. The company operates mainly in the London area and is based in Peterborough. At a recent board meeting, the company decided to expand its activities, and to lease additional temporary premises in London in order to cope with additional demand.
In this unit, you will analyse data related to anticipated cash flows resulting from BLC’s expansion to either of two potential new premises. Your group will collaborate to make a recommendation.

To prepare for this Shared Activity:

  • Review the financial data below. The company has narrowed the choice to the following two alternatives, with the following cash flow information being available.
  • Use the following data in your analysis:

Year

Property 1
$(000s)

Property 2
$(000s)

0

                          (2,500)

(2,750)

1

1,000

900

2

500

700

3

600

800

4

1,000

600

5

900

600

Note 1: The company’s current cost of capital is 10%.

Note 2: Ignore taxation.

To complete this Shared Activity:

  • Post an explanation of the tools that you believe would help you to reach a decision. If you were a decision-maker in this organisation, which calculations and measures would you want at your disposal before making your choice? Are there other, non-financial factors that may play a role in your decision? Additionally, include your recommendation to the company which option it should take. Support your decision with an interpretation of any calculations you performed, as well as an explanation of any other factors you considered.
NPV Year 10% factors 0 (2,500) (2,750) 1 (2,500) (2,750) 1 1000 900 0.9091 909.10 818.19 2 500 700 0.8264 413.20 578.48 3 600 800 0.7513 450.78 601.04 4 1000 600 0.6830 683.00 409.80 5 900 600 0.6209 558.81 372.54 Ending NPV 514.89 30.05 Payback Period Year $(000s) $(000s) 0 -2,500 -2,750 1 1,000 900 2 500 700 3 600 800 4 1,000 600 5 900 600 Payback 3 years = 2100 2400 Plus $400k part of yr 4 Plus 350k of yr 4 400/1000 0.4 0.58 350/600 Yr 1 2 & 3 3 3 Total Years 3.4 3.58 Accoun±ng Rate of Return Year $(000s) $(000s) 0 -2,500 -2,750 1 1,000 900 2 500 700 3 600 800 4 1,000 600 5 900 600 5 Yr Total 4,000 3,600 Year Avg 800 720 Total Cost 2500 2750 Project 1 Net Cash Flow Project 2 Net Cash Flow NPV of Project 1 NPV of Project 2 Propert y 1 Propert y 2 Propert y 1 Propert y 2
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32% 26% APR of Investment
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Answer 29042016(1) BLC Inc. project valuation.xlsx

It is worth to note that at the time of making quantitative assessment of an investment the prime
consideration is future value of money. The most important among them that the investor is keen to...

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