# Capital budgeting decision models | Management homework help

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.

Project A Project B Project C Project D   Inital Outlay (105,000.000) (99,000.00) (110,000.00) (85,000.00)   Inflow year 1 53,000.00 51,000.00 25,000.00 45,000.00   Inflow year 2 50,000.00 47,000.00 55,000.00 50,000.00   Inflow year 3 48,000.00 41,000.00 15,000.00 30,000.00   Inflow year 4 30,000.00 52,000.00 21,000.00 62,000.00   Inflow year 5 35,000.00 40,000.00 35,000.00 68,000.00   Rate 7% 10% 13% 18%

• 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?

Project D Project E Project F   Cost 205,000.00 179,000.00 110,000.00   Inflow year 1 53,000.00 51,000.00 25,000.00   Inflow year 2 50,000.00 87,000.00 55,000.00   Inflow year 3 48,000.00 41,000.00 21,000.00   Inflow year 4 30,000.00 52,000.00 9,000.00   Inflow year 5 24,000.00 40,000.00 35,000.00

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

Component Balance Sheet Value Market Value Cost of Capital   Debt 5,000,000.00 6,850,000.00 8%   Preferred Stock 4,000,000.00 2,200,00.00 10%   Common Stock 2,000,000.00 5,600,000.00 13%

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.