Below are four cases that you will have to solve using Excel spreadsheets. 2nd case The COMPETIDORA SA company has the possibility of investing in three different projects . The projections show us the following information on which a decision must be made: PROJECT X Y Initial investment $180,000 $250,000 76210.000 Year 1 cash flows $50,000 $80,000 Year 2 cash flows $70,000 $80,000 $130.000 Year 3 cash flows $80,000 $80,000 $1 Year 4 cash flows $100,000 $80,000

Financial Management: Theory & Practice
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Chapter9: The Cost Of Capital
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Below are four cases that you will have to solve
using Excel spreadsheets.
2nd case
The COMPETIDORA SA company has the possibility of investing in three different projects
. The projections show us the following information on which a decision must
be made:
PROJECT
X
Y
Initial
Z$310,000
It is requested:
investment
$180,000
$250,000
Year 1
cash flows
$50,000
$80,000
$150,000
1. Determine the internal rate of return.
2. Determine the present value.
Year 2
cash flows
3. Determine the recovery period.
4. Define which is the most viable project.
$70,000
$80,000
$120,000
The discount rate for the project will be 9% and the investors propose a MARR
of 22%.
Year 3
cash flows
$80,000
$80,000
$100,000
Year 4
cash flows
$100,000
$80,000
Transcribed Image Text:Below are four cases that you will have to solve using Excel spreadsheets. 2nd case The COMPETIDORA SA company has the possibility of investing in three different projects . The projections show us the following information on which a decision must be made: PROJECT X Y Initial Z$310,000 It is requested: investment $180,000 $250,000 Year 1 cash flows $50,000 $80,000 $150,000 1. Determine the internal rate of return. 2. Determine the present value. Year 2 cash flows 3. Determine the recovery period. 4. Define which is the most viable project. $70,000 $80,000 $120,000 The discount rate for the project will be 9% and the investors propose a MARR of 22%. Year 3 cash flows $80,000 $80,000 $100,000 Year 4 cash flows $100,000 $80,000
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