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Solve the problems below using well-formatted Excel solutions. Do not hardcode numbers in the formulas…..only use...

Solve the problems below using well-formatted Excel solutions. Do not hardcode numbers in the formulas…..only use cell references to the input data. I will change the input data in your problem to check alternate solutions. You will turn in a complete working Excel spreadsheet with your solution.
1. A firm is considering the two mutually exclusive investments projects. Project Alpha requires an initial outlay of $600 and will return $160 per year for the next seven years; Project Beta requires an initial outlay of $1,100 and will return $350 per year for the next five years. Assuming a 11% required return, calculate the NPV, IRR, Payback Period, PI, and MIRR of each project. Which project is preferable and what factors led you to come to this conclusion?

Homework Answers

Answer #1

We should choose Project Beta as it has higher NPV

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