Reference no: EM132343853

Each problem should be answered on a clearly labeled separate worksheet of the spreadsheet. Answers should be formatted in a manner that makes them clear and easy to read. Each of the following Excel functions should be used to calculate at least one of the answers: FV, PV, PMT, RATE, NPER, NPV, AVERAGE, STDEV, and IRR. Calculating the answers elsewhere and typing or pasting them into the spreadsheet is unacceptable. The spreadsheet project submitted should be a single-file, readable in Microsoft Excel to the Activities, then to Assignments at the top of the course homepage.

Bill Williams has the opportunity to invest in project A that costs $ 8 500 today and promises to pay $ 2200, $ 2500, $ 2 500, $ 2100 and $ 1 800 over the next 5 years. ? Or, Bill can invest $ 8500 in project B that promises to pay $ 1600, $ 1600, $ 1 600, $ 3 400 and $ 4000 over the next 5 years.

?(?Hint: For mixed stream cash? inflows, calculate cumulative cash inflows on a? year-to-year basis until the initial investment is recovered.?)

a. How long will it take for Bill to recoup his initial investment in project? A?

b. How long will it take for Bill to recoup his initial investment in project? B?

c. Using the payback? period, which project should Bill? choose?

d. Do you see any problems with his? choice?