Financial analyst for a small firm

Assignment Help Financial Management
Reference no: EM131305659

FIN 340 Excel Assignment

You may work in groups of up to 3 students for this assignment.

You have just been hired as a financial analyst for a small firm whose employees do not have much experience with Excel. As your first task, you have been asked to develop a simple Excel spreadsheet that your manager can input values for a project the firm is considering to determine whether the project is acceptable. The capital budgeting techniques that the firm uses: Net Present Value; Internal Rate of Return; Profitability Index.

The spreadsheet should contain cells where the manager can input cash flows associated with the project, and the project hurdle rate (or cost of capital). Assume that the longest project that will be considered is a ten-year project. The spreadsheet should contain cells that calculate the NPV, IRR and PI once the inputs have been entered.

Because this is for a manager that has not used Excel before, the spreadsheet should include instructions on how to enter in the inputs (for example, should the initial investment be entered in as a negative or positive value). It should also be formatted so that the manager is able to immediately see whether the project is acceptable or not, without the manager needing to know what the criteria are for accept/reject for a particular technique. In other words, based on the value (NPV, IRR, etc.) generated by the project, there should be a cell that indicates whether the project should be accepted or not.

Finally, the manager's background is in design, so he likes to see documents that are visually pleasing. This assignment is worth 5 points. You have the opportunity to earn one extra credit point if you also set up a calculation and provide the accept/reject decision using the payback period. To earn the extra credit point, you will have to use nested =IF statements to figure out the payback period in one cell. For your firm, the maximum acceptable payback period is 4 years.

The following Excel functions may come in useful: =NPV, =IRR, =IF

Attachment:- Excel Functions.rar

Reference no: EM131305659

Questions Cloud

Description of the motivational practices : How a contemporary company motivates employees to support the development of an effective and competitive organization.  Identification of a company that utilizes effective motivational practices. Description of the motivational practices.
Two beliefs your organization has about management : Which of your current beliefs (choose one or two) around Management do you wish could change (describe it) and why? Identify one or two beliefs your organization has (that may be different from your own) about Management (describe it) that you would ..
How many adults in total said they watch the cooking channel : Regardless of the number of dogs or cats someone owns (including zero!), about how many U.S. adults in total said they watch the Cooking Channel?
Discuss about the focus of juvenile justice : During the course of processing a youthful offender, under what circumstances, if any, should the juvenile justice system abandon rehabilitation and focus on punishment?What criteria should be used when deciding whether to focus primarily on punish..
Financial analyst for a small firm : FIN 340 Excel Assignment. You have just been hired as a financial analyst for a small firm whose employees do not have much experience with Excel. As your first task, you have been asked to develop a simple Excel spreadsheet that your manager can ..
Analyze commonly accepted forensic techniques : Explain how to process and retrieve trace evidence involving firearms.Evaluate accepted methodologies employed in contemporary crime scene management relative to firearms. Analyze commonly accepted forensic techniques and contemporary specialized tec..
Discuss about the police leadership and organizations : Discuss about the Police leadership and Organizations.Write two paragraphs on your opinion on the subject provided and what you would or would not change based on your beliefs, opinions and thoughts.
Draw an arbitrary budget constraint for a person : Draw an arbitrary budget constraint for a person assuming that he or she receives no workers' compensation - Analyze the difference in the labor supply incentive effects of these two programs.
Determine the family and school risk factors for gang : Discuss the three models used to understand the relationship between delinquency and gang involvement. Which do you agree with most? Why?Determine the family and school risk factors for gang involvement.

Reviews

Write a Review

Financial Management Questions & Answers

  What percentage of the loans could go sour

If 60 percent of its assets were loans, what percentage of the loans could go sour before the bank would lose all of its capital?

  About the purpose for the company trust

Draw a conclusion about the purpose for the company’s trust based on the research of your company. Why would a small business owner want to set up a trust and how could it be used for estate planning purposes?

  How much should you borrow at the risk-free rate

In order to replicate the payoff of your two call options at the expiration date that you selected, how many shares of stock should you buy today, and how much should you borrow at the risk-free rate? Calculate and explain.

  Hat is the return on assets and return on equity

The Carpentry Shop has sales of $398,600, costs of $254,800, depreciation expense of $23,400, interest expense of $1,200 and a tax rate of 30 percent. What is the net income for this firm? The Next Life has sales of $450,000, total assets of $150,000..

  What is the dividend payout ratio and gross margin

If there is a revenue = to 500,000 Cogs = 400,000 GM = ? OPS exp = 10,000 Interest expence = 50.000 What is the Net Profit. What is Gross Margin? What is the dividend payout ratio?

  Portfolio of common stocks in companies

Discuss how the portfolio beta compares to your own willingness to take risks. Discuss whether you would rather hold an individual stock or a portfolio of stocks. please properly cite your work.

  Corporate bonds-make coupon payments

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 25 years to maturity, and a coupon r..

  What is the after-tax cash flow expected to be generated

For a new project, Indigo Ink Inc. had planned on depreciating new machinery that costs $300 million on a 4-year, straight-line basis. Suppose now, that Armstead decides to depreciate the new machinery on an accelerated basis according to the followi..

  What is freds total initial margin

Fred has just sold short 3 contracts of May wheat on the CBT. These are 5,000 bushel contracts. The initial deposit is $1,500 per contract with a maintenance margin of $1,200. What is Fred's total initial margin? How much of an increase in the price ..

  Main steps in risk management process are identifying risks

Managers hedge because they are undiversified: Small shareholders like us can diversify our risks, but managers cannot. They invest their income from labor as well as their personal assets in the firm. The main steps in the risk management process ar..

  Calculate the share price for bills bakery

Bill’s Bakery expects earnings per share of $3.22 next year. Current book value is $5.2 per share. The appropriate discount rate for Bill’s Bakery is 14 percent. Calculate the share price for Bill’s Bakery if earnings grow at 4 percent forever.

  Won the church spring raffle

You have won the church spring raffle. You are presented with three price choices, and you must pick the best one. The discount rate if 8%. Choice 1 = $4,800 payment one year from now; Choice 2 = 5 payments of $1,200 starting at the end of this year;..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd