Project #84155 - Two Finance problems

I need these two finance problems worked out in an hour on an excel spread sheet

 

A firm has five identified capital projects they could fund in the upcoming year. Each project has a initial capital cost of $5,000,000, however the firm only has $15,000,000 allocated for capital projects in the current year. The company needs to decide which projects to fund. The firms initial cost of capital (discount rate) is 8%.

 

Cash Flows ($ in thousands)

Projects

A

B

         C

D

E

Year 1

$1,100

$6,000

--

$1,000

$500

         2

$1,100

--

$1,000

$2,500

$1,500

         3

$1,100

--

$2,000

$3,500

$3,000

         4

$1,100

--

$3,000

$2,750

$3,500

         5

$1,100

--

$2,200

$1,000

$4,500

 

 

 

 

 

 

 

 

 

 

 

 

1.     What is the internal rate of return on each investment?

2.     According to the internal rates of return, which investment(s) should the firm make? Why?

 

Subject Business
Due By (Pacific Time) 09/28/2015 07:21 pm
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