Description
Prepare in Microsoft® Excel® Assignment will not be accepted if done in any program other than Excel.
- Ch. 9: Questions 7 & 8 (Questions and Problems section)
- Ch. 10: Questions 3 & 13 (Questions and Problems section)
- Ch. 11: Questions 1 & 7 (Questions and Problems section)
I have attached the questions and problem sets. Complete these in Excel.
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Explanation & Answer
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A firm evaluates all of its projects by applying the IRR rule. If the required return is 14
percent, should the firm accept the following project?
Year
0
1
2
3
IRR
Cash Flow
-26000
11000
14000
10000
16,69%
Since the IRR is greater than the required return, we
would accept the project
For the cash flows in the previous problem, suppose the firm uses the
NPV decision rule. At a required return of 11 percent, should the firm
accept this project? What if the required return is 24 percent?
Year
0
1
2
3
Cash Flow
...