Corporate finance: Core principles and applications (4th ed.) given question tutorial in excel

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• Chapter 7, problem 1b (page 221).
• Chapter 7, problem 2 (page 221).
• Chapter 7, problem 8 (page 222).
• Chapter 7, problem 9 (page 222).
• Chapter 8, problem 1 (page 249).
•    Corporate finance: Core principles and applications (4th ed.)

CHAPTER 7: PROBLEM 1b
	Project A	Project B
Discount Rate	15%	15%
Year 0	($14,500)	($9,800)
Year 1	$8,500	$4,700
Year 2	$6,800	$4,200
Year 3	$2,800	$4,100
NPV =	#NAME?	#NAME?	(Note: You will choose the project that has the highest NPV since it creates the most wealth)
CHAPTER 7: PROBLEM 2
Year	A.	B.	C.
0	$3,200	$4,600	$7,900
1	$825	$825	$825
2	$825	$825	$825
3	$825	$825	$825
4	$825	$825	$825
5	$825	$825	$825
6	$825	$825	$825
7	$825	$825	$825
8	$825	$825	$825
Payback Period =	#NAME?	#NAME?	#NAME?
CHAPTER 7: PROBLEM 8
Year	Project A	Project B
0	($5,200)	($3,600)
1	1,800	1,300
2	3,200	2,100
3	2,200	1,800
IRR =	#NAME?	#NAME?
CHAPTER 7: PROBLEM 9
Discount Rate	15%
Year
0 (Initial Cost)	($185,000)	$185,000
1	62,000
2	62,000
3	62,000
4	62,000
5	62,000
6	62,000
7	62,000
First find the NPV	#NAME?	(Use the built-in NPV formula in Excel but exclude using the Year 0 cash outflow)
Now calculate the Profitability Index	#NAME?	(Use the positive amount of the initial cost in cell C44 in the formula. You would only accept the project if the Profitability Index is above 1)
CHAPTER 8: PROBLEM 1
Cost of Souffle Maker	$27,000	($27,000)
Economic Life	6	years
# of Souffles produced per year	2,300
Cost to make each Souffle	$2
Price of each Souffle	$7
Discount Rate	14%
Tax Rate	34%
Step 1: First calculate the Operating Cash Flow	#NAME?
Step 2: Place the answer you get for your Operating Cash Flow in the year 1 thru year 6 cells below
Year 1	#NAME?
Year 2	#NAME?
Year 3	#NAME?
Year 4	#NAME?
Year 5	#NAME?
Year 6	#NAME?
Step 3: Now find the NPV. Be sure to include the initial cost by using cell C58 as it is negative
NPV =	#NAME?	(You will accept the pro

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