Assignment
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 will show your work in a Word document or Excel spreadsheet. 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.
Format your assignment according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the assignment, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.