FIN3030 Week-3 Assignment-2

  

You will compare three projects. The following table lists each projects initial outlay (price of the project) in year 0 (zero). The following years are the cash inflows. All projects receive the same total cash inflows. They differ on when the cash flows occur and the amount of the annual cash flow You must submit your backup in Excel showing how answers were reached. Use the formula and the financial calculator or Excel to determine:

Given three projects with the following cash flows:

    

Project A

Project B

Project C

 

Year

Cash Flow

Cash Flow

Cash Flow

 

0

-1000

-1000

-1000

 

1

200

500

350

 

2

300

400

350

 

3

400

300

350

 

4

500

200

350

 

1. Find the NPV,      IRR and MIRR of each the projects with a cost of capital of 5%, 10%, and      12%. 
2. Determine the      payback period of each project. 
3. Determine the      acceptance of the projects if you have a capital budget of $3000, $2000.      and $1000. 
4. Compare the      timing of the cash flows of each project relative to its NPV. 
5. Compare how      the timing and size of the cash flows change the net present value.