# Homework help

Email us: support@customwritings-us.com

1. Complete Problem 14.1 on page 290 of the course text. Next, work the problem again using the following variables: project yield annual net cash inflows are \$10,500 for the next five years; interest rate of 16.5%, and the initial investment of \$33,000. Calculate the net present value of the cash flows and the IRR for the project using the Excel spreadsheet formula. Explain the concept of Net Present Value.

2. Complete Problem 16.4 on page 329-330 of the course text . Next work the problem again using the following variables: The selling price is expected to be £350 per tonne for the first three months and £360 per tonne thereafter. Variable costs per tonne are predicted as £100 in the first quarter, £120 in the second quarter, and £130 in the last two quarters; and salary and wages do not increase in the last two quarters. The rest of the assumptions are as listed on problem 16.4. What is the cumulative cash flow at the end of Quarter 4? Be prepared to paste your worksheet for this problem into the OAES.