Practice the measurement of net present value


Purpose of Assignment

The purpose of this assignment is to allow the students to become familiar with and practice the measurement of Net Present Value (NPV), payback, and Weighted Average Cost of Capital (WACC) using Microsoft® Excel®.

Assignment Steps

Resources: Microsoft® Excel®, Capital Budgeting Decision Models Template

Calculate the following problems using Microsoft® Excel®:

• Calculate the NPV for each project and determine which project should be accepted.

• Your company is considering three independent projects. Given the following cash flow information, calculate the payback period for each. If your company requires a three-year payback before an investment can be accepted, which project(s) would be accepted?

• Using market value and book value (separately), find the adjusted WACC, using 30% tax rate.

Click the Assignment Files tab to submit your assignment.

Attachment:- Capital Budgeting Decision Models.rar

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