COMPUTER APPLICATIONS IN FINANCE FIN 3450 ASSIGNMENT 4 USE EXCEL TO SHOW ALL YOUR WORK

COMPUTER APPLICATIONS IN FINANCE
FIN 3450
ASSIGNMENT 4
USE EXCEL TO SHOW ALL YOUR WORK
[DUE ON 8/13/2018; Team Project; 50 Points]

Problem 1: The following cash flows are given for two independent projects:
YEAR PROJECT A  PROJECT
 0 -$495,000 -$960,000
 1 $352,000 $385,000
 2 $198,000 $464,000
 3  $165,000 $319,000

The discount rate for the projects is 11%.
(a) Calculate the NPV for each project.
(b) Which project or projects would you accept?
(c) What will be your decision if the projects were to be mutually
 exclusive projects?
(d) Also calculate the IRR for each project
 

PROBLEM 2: The following cash flows are given for two mutually
exclusive projects:

YEAR XP_30 NX_50
 0 -$700,000 -$550,000
 1 $400,000 $180,000
 2 $350,000 $250,000
 3 $280,000 $250,000
 4 $200,000 $180,000
The discount rate for the projects is 12%.
(a) Calculate the NPV for each project
(b) Which project would you accept?