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Data Case Chapter 7: You have just been hired by Dell Computers in its capital budgeting division. Development of the new system will initially...

1. Obtain Dell's financial statements. (If you "really" worked for Dell you would already have this data, but at least here you won't get fired if your analysis is off target.) Download the annual income statements, balance sheets, and cash flow statements for the last four fiscal years from Market Watch (www. marketwatch.com). Enter Dell's ticker symbol (DELL) and then go to "Financials." Export the statements to Excel by right-clicking while the cursor is inside each statement
e. To determine the free cash flow, calculate the additional capital investment and the change in net working capital each year. 3. Determine the IRR of the project and the NPV of the project at a cost of capital of 12% using the Excel functions. For the calculation of NPV, include cash flows 1 through 5 in the NPV function and then subtract the initial cost For IRR, include cash flows 0 through 5 in the cash flow range. (i.e., = NPV (rate, CF1:CF5) + CF0). For IRR, include cash flows 0 through 5 in the cash flow range.

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