We can work on Excel Functions and Capital Budgeting (NPV and IRR)

You are a financial analyst for a corporation. As part of the Treasurer’s department you regularly evaluate the merits of capital expenditure projects for the company. Since, not only is it the budget cycle time, but because you analyze hundreds of projects, your manager wants to streamline the process so that projects can be financially be evaluated quickly. As a result, you have been tasked with developing a financial model that allows relatively quick assessment but permits input of varying costs of capital and other changes which will make the model effective.

Requirements:

  1. Build a capital budgeting type model that can be used regularly to assess capital expenditure projects.
  2. Your model must include the following, on the same sheet:
    a. Inputs (20 points)
  3. Name of the project (both projects)
  4. Cost of Capital
  5. Initial investment (for 2 projects)
  6. Cash flows for up to 10 periods (for 2 projects)
  7. Time periods (1,2,3, 4…)
  8. Date periods (actual dates)
    b. Outputs (comparative table close to the inputs) – 10 points
  9. NPV for each project
  10. XNPV for each project
  11. IRR for each project
  12. XIRR for each project
  13. Acceptance or rejection decision for each project
    c. Processing (30 points)
  14. Formulas for NPV and IRR in the output section
  15. Formulas for XNPV and XIRR in the output section
  16. Formulas for accept/reject decision
  17. HINT: Use if/then logical functions
  18. There are 2 independent projects to be analyzed. The names, initial investments, and cash flows are indicated below. Using this data, input this into the model you built to determine the results.
    a. Cost of Capital = 10%
    Date Year Project A Project B
    November 1, 2016 0 (Initial investment) $130,000 $92,000
    November 10, 2016 1 50,000 40,000
    June 30, 2017 2 35,000 35,000
    August 14, 2017 3 40,000 32,000
    December 13, 2017 4 50,000 10,000
    April 12, 2018 5 51,000 15,000
  19. Since costs of capital can change, you want to see the impact on the acceptability of the projects, at different costs of capital, within a specified range. (20 points)
    a. Complete a Sensitivity Analysis, using Data Table, for NPV and XNPV only, for both projects A & B (2 Data Tables)
    b. Since you want the model to be re-used for various different projects, build a formula that calculates the range of costs of capital based upon a +/- increment. The increments you should use are as follows (in this order):
  20. + .03
  21. + .025
  22. + .02
  23. + .015
  24. + .01
  25. + .005
  26. + 0.0
  27. – .005
  28. – .01
  29. – .015
  30. – .02
  31. – .025
  32. – .03
  33. Open a 2nd worksheet (sheet2) and copy all contents from Sheet1. Using Sheet2, now, use Solver to find what Cost of Capital will result when NPV = 0, and SAVE this sheet with the changed Cost of Capital. (10 points)
    a. Use NPV for Project A, only for this result
  34. On Sheet 1, complete a Pivot Table, using the data from your Data Table, and build the following report: (10 points)
    a. Use the data from the 2 data tables you built in #4
    b. The pivot table should be organized as follows:
  35. Range of cost of capital in the first column using only the Costs of Capital for project A, since both are the same
  36. NPV Project A in the next column, by cost of capital
  37. NPV Project B in the following column, by cost of capital

Sample Solution

The Community Neighborhood people group ought to conform to government laws and homegrown guidelines. However long they meet the necessities of these chances, everybody has equivalent open doors for an amazing duration. Individuals who are qualified and give a valiant effort for the network lead the network. Society depends on choice, except if rules are watched and nobody is harmed. Rules and guidelines are intended to secure individuals of the general public so as to fabricate a sheltered and agreeable network. There are two essential sorts of network networks, networks characterized by topographically characterized networks and geologically various factors. Instances of geologically characterized networks are networks or neighborhoods. The assembled houses share a typical space. Nearby economies and territorial organizations are likewise viewed as a feature of the neighboring network. Individuals from the network are invested individuals in network wellbeing, and I am keen on this What is a network? Parker characterizes the network as individuals who share a typical space or district, share a typical relationship, connect with one another, and are generally utilized in the writing (Fritz, 1985). The people group comprises of shared commitments and connections connecting people to establishments and relationship organizations. In most geological networks, there is a typical association and a pretty much free network. Schools, law requirement offices, and social government assistance offices are three instances of formal associations inside the network that are especially applicable for substance misuse. Guardians and understudy associations vary in structure, basic to most networks, and can assume a significant function in forestalling drug misuse. Local gatherings and individuals from the association cooperate to make, characterize, and take care of social issues by collaborating with one another.Communism At first, socialism appeared to be an ideal for Russian residents. The understanding of Lenin’s own Marxist scrutinize should initially be a communist despot so as to accomplish socialism. Start things out to stifle complaints and fights. Through compulsory measures, the new government got power and in 1917 Lenin took power. Subjects that can improve the administration’s vocation include: open talking, news coverage, relational correspondence, media framework presentation, correspondence hypothesis, correspondence research strategy, authoritative correspondence, conversation and conversation, manner of speaking hypothesis and analysis , Political correspondence, influence, media execution, tuning in, correspondence morals, execution research, execution. The connection among computerization and correspondence has gotten the subject of broad exploration by correspondence specialists. Numerous broadcast communications divisions offer specialization in data science, human data hypothesis and cycles or correspondence advances, which regularly incorporate PCs, compacted video, and interchanges through telephone calls. Correspondence is wherever in the improvement cycle. Correspondence incorporates broad communications, media communications, data and correspondence innovation (ICT), composed relational correspondence, and all the assets that society uses to make data stream. Its motivation is to urge individuals to give data, teach, convince, engage, inspire, and advance social changes that add to the improvement of the nation. As indicated by Fraser and Restrepo – Estrada (2001), it states as follows. Correspondence is an indispensable aspect of the improvement plan from the beginning, distinguishing issues and needs, and assuming a significant part in definite cycles. Assessment … Correspondence requires clear objectives, distinguishing proof of different subjects, cautious data plan, and checking and criticism. ” Declining Drug Abuse: Sociological Strategy for Community Social Practice W. David Watts South West Texas State University Systems for network based sociological practice are examined. With regards to social development of practical hypotheses, the part of sociologists in helping networks comprehend social issues has been examined. When the network acknowledges young people ‘substance misuse issues, the hypothesis of control and partners’ affiliation can lead sociologists who wish to work with neighborhood pioneers to battle drug misuse. Network association, reinforce the association among guardians and different gatherings, bring down the network’s capacity to bear drug misuse, manufacture uphold for peer anticipation Declining Drug Abuse: Sociological Strategy for Community Social Practice W. David Watts South West Texas State University>

Is this question part of your Assignment?

We can help

Our aim is to help you get A+ grades on your Coursework.

We handle assignments in a multiplicity of subject areas including Admission Essays, General Essays, Case Studies, Coursework, Dissertations, Editing, Research Papers, and Research proposals

Header Button Label: Get Started NowGet Started Header Button Label: View writing samplesView writing samples