You Have Three Problems One On Each Tab O Instructions instr

You Have Three Problems One On Each Tab O Instructions instructions 1. You have three problems - one on each tab of this Excel file. 2. Please show your work in the cells. Use Excel formulas instead of writing the values/answers directly in the cell. The instructor will then know where you made a mistake and provide you valuable feedback and partial credit (if appropriate). 3. It is recommended to watch the assigned videos in week # 4. Total Points: 10 Problem 1 NPV Calculate the NPV for each project and determine which project should be accepted. Project A Project B Project C Project D Initial Outlay (105,000.,000.,000.,000.00) Inflow year 1 53,000.,000.,000.,000.00 Inflow year 2 50,000.,000.,000.,000.00 Inflow year 3 48,000.,000.,000.,000.00 Inflow year 4 30,000.,000.,000.,000.00 Inflow year 5 35,000.,000.,000.,000.00 Rate 7% 10% 13% 18% NPV = Answer: Refer to the Solved Example 9.2 on pg. 265 of your text. Problem 2 Payback 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.,000.,000.00 Inflow year 1 53,000.,000.,000.00 Inflow year 2 50,000.,000.,000.00 Inflow year 3 48,000.,000.,000.00 Inflow year 4 30,000.,000.00 9,000.00 Inflow year 5 24,000.,000.,000.00 Payback Period Answer: Refer to the Solved Example 9.1 on pg. 259 of your text. Calculations Year 1 Year 2 Year 3 Year 4 Year 5 Formulas Year 1 Year 2 Year 3 Year 4 Year 5 Problem 3 WACC Using market value and book value (separately), find the adjusted WACC, using 30% tax rate. Component Balance Sheet Value Market Value Cost of Capital TAX Debt 5,000,000.00 6,850,000.00 8% 30% Preferred Stock 4,000,000.00 2,200,000.% Common Stock 2,000,000.00 5,600,000.% Refer to the Solved Example 7 on Page 334 of your text. ANSWER Book Value Weights Market Value Weights Adjusted WACC Debt Debt Market Value Preferred Stock Preferred Stock Book Value Common Stock Common Stock Assignment Details I. This assignment has 4 parts: Organizations today understand the need to change is ever present. If a company does not change, it will become stagnant and lose competitive advantage within the respective industry. 1. What do you believe the different viewpoints of change are within an organization? 2. Who are the change agents within an organization? 3. What are the pros and cons of change management? 4. How do you believe change will affect different levels of employees within the organization? II. This assignment has 4 parts: In the current business environment groups and teams are common. Understanding the differences not only between a group and a team but also the different types of teams will allow you to have a holistic view of how organizational change will affect the people. 1. How do you perceive the similarities and