Create a summary report showing the npv

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Reference no: EM132713697

Scenarios Analysis

You invested $40,000 in a business. You receive $10,000 back for 7 subsequent years at end of each year starting from year one. Assuming at a discount rate of 8%, what are the Net Present Value, Internal Rate of Return and Payback period of your investment?

In addition to the original baseline scenario, create the following 3 scenarios:

Smaller dividends - the income for the 7 subsequent years is £9,000 only
Higher initial investment - the original outgoing is £60,000, not £40,000
Interest rate rise - the discount rate is 10%, not 8%

Which of these scenarios would produce the lowest NPV, do you think?

Create a summary report showing the NPV, IRR and Payback period for each scenario (include the baseline scenario).

Cash Flows Analysis

In a pub one day, you meet an old friend, who offers you a chance to invest in his new mobile chip shop. For an outlay of $50,000 you will receive an income of £10,000 each year for 8 years, after which time ownership will pass to your friend. Open the file in the folder shown above to see the base model.

Input formulae into the blue shaded squares to calculate the cashflow for this model, and prove that at the end of 8 years (and given the interest rate assumptions shown) you will have $13,749.03 in the bank:

Pivot Table

Create a pivot table of the property portfolio to show:

The asking price as the value field;
The type of property in the rows;
The location in the columns;
The remaining fields in the filter area.

Change the filters and aggregate functions to show a count of properties that have:
3 bedrooms;
A medium garden; and
2 bathrooms.

In cell C4, create a nested =IF formula that either calculates the parking charges or displays the message Free Parking. Use these rules to help you:

If the hours parked > 8, the driver should pay $1 per hour
If the hours parked >5, the driver should pay $1.50 per hour
Anything less should display Free Parking

Create the following range names:

Sales - referring to C5:C11
Rates - referring to D4:M4
Use the range names to calculate the commission for each salesperson.

Reference no: EM132713697

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