FIN 341 Quiz#5 Based on

Exercise#5
Due Date 2-24-15 -TuesdayMidnight
.

Calculating the Net Present Value (NPV) using

the Excel Spreadsheet.

Calculate NPV using the Excel spreadsheet. Show the

layout and answer on an Excel spreadsheet and send
the Excel spreadsheet through Desire to Learn to Dr.
Tucker. Do not send anything in MS-Word to Dr.
Tucker.
1.II (Initial Investment) = $400,000 year 1 to 5 cash
flow is $60,000, $80,000, $100,000, $125,000,
$150,000 at the end of year 5 there is a $10,000 TCF,
R = 9%. Calculate the NPV.

2.Same as #1 except due to an increase in political

risk the risk adjusted discount rate increased to
12%. Calculate the NPV.

3.Same as #1 except due to a decrease in political

risk the risk adjusted discount rate decreased to
6%. Calculate the NPV.

4.II (Initial Investment) = $425,000 year 1 to 4 cash

flow is $100,000, $120,000, $150,000, and $180,000
at the end of year 4 there is a $5,000 TCF, R = 8%.
Calculate the NPV.

5.Same as #4 except due to an increase in political

risk the risk adjusted discount rate increased to
11%. Calculate the NPV.

6.Same as #4 except due to a decrease in political

risk the risk adjusted discount rate decreased to
5%. Calculate the NPV.

7.II (Initial Investment) = $500,000 year 1 to 5 cash

flow is $100,000, $125,000, $160,000, $180,000,
$220,000 at the end of year 5 there is a $10,000 TCF,
R = 15%. Calculate the NPV.

8.II (Initial Investment) = $1,000,000 year 1 to 5 cash

flow is $200,000, $250,000, $320,000, $400,000,
$450,000 at the end of year 5 there is a $15,000 TCF,
R = 12%. Calculate the NPV.

9.II (Initial Investment) = $2,000,000 year 1 to 5 cash

flow is $420,000, $540,000, $650,000, $700,000,
$750,000 at the end of year 5 there is a $25,000 TCF,
R = 10%. Calculate the NPV.

10.II (Initial Investment) = $5,500,000 year 1 to 5

cash flow is $850,000, $900,000, $1,400,000,
$1,600,000, $2,000,000 at the end of year 5 there is
a $100,000 TCF, R = 14%. Calculate the NPV.

Calculating the Internal Rate of Return (IRR)

using the Excel Spreadsheet.
Calculate the internal rate of return (IRR) using the
Excel Spreadsheet for a NPV project. Show the layout
and answer on an Excel spreadsheet and send the
spreadsheet through Desire to Learn to Dr. Tucker. Do
not send anything in MS-Word to Dr. Tucker.
11 .II = $620,000 year 1 to 4 cash flow is $130,000,
$150,000, $250,000, and $280,000. Calculate the
IRR.
12. II = $950,000 year 1 to 5 cash flow is $200,000,
$230,000, $260,000, $280,000, and $300,000.
Calculate the IRR.

13 .II = $800,000 year 1 to 3 cash flow is $260,000,

$320,000, $350,000, at the end of year 3 there is a
TCF of $25,000. Calculate the IRR.
14 .II = $500,000 year 1 to 4 cash flow is $125,000,
$140,000,
$150,000, and $180,000. Calculate the IRR.

15. II = $280,000 year 1 to 4 cash flow is $90,000,

$100,000,
$120,000, and $150,000. Calculate the IRR.

16. II = $250,000 year 1 to 3 cash flow is $95,000,

$125,000,
and $140,000. Calculate the IRR.

17. II = $460,000 year 1 to 3 cash flow is $150,000,

$200,000,
and $250,000. Calculate the IRR.

18. II = $1,200,000 year 1 to 5 cash flow is

$160,000, $280,000, $300,000, $325,000, and
$350,000. Calculate the IRR.

19. II = $650,000 year 1 to 3 cash flow is $210,000,

$240,000,
and $350,000. Calculate the IRR.

20. II = $680,000 year 1 to 4 cash flow is $155,000,

$175,000, $200,000, and $250,000. Calculate the
IRR.

END FIN 341 Quiz#5