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  • Practical Valuation - Problem Set Week 2 - Solutions - Upgrade

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    Shravan Deshmukh
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    Practical Valuation_Problem Set Week 2 _ Solutions_ Upgrade (1)

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    9 views4 pages

    Practical Valuation - Problem Set Week 2 - Solutions - Upgrade

    Uploaded by

    Shravan Deshmukh

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Date Cash Flows

    Year Project A Project B


    0 -€ 400,000.00 -€ 400,000.00
    1 € 300,000.00 € 100,000.00
    2 € 200,000.00 € 200,000.00
    3 € 100,000.00 € 300,000.00
    TOTAL CF € 600,000.00 € 600,000.00
    Total CF - Ko € 200,000.00 € 200,000.00

    Required rate of return 22%

    2a) NPV € 35,344.81 -€ 18,448.24

    2b) IRR 28.86% 19.44%


    Note Note
    Project A CF's decrease Project B CF's increase
    Optional Calculation Method
    € 245,901.64 € 81,967.21
    € 134,372.48 € 134,372.48
    € 55,070.69 € 165,212.07
    € 35,344.81 -€ 18,448.24

    Note Link Excel function


    *+ B3 & C3 because -Ko is negative https://support.microsoft.com/en-u

    https://support.microsoft.com/en-u
    icrosoft.com/en-us/office/npv-function-8672cb67-2576-4d07-b67b-ac28acf2a568

    icrosoft.com/en-us/office/irr-function-64925eaa-9988-495b-b290-3ad0c163c1bc
    b67b-ac28acf2a568

    290-3ad0c163c1bc

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