Question

Using the Payback Method, IRR, and NPV Problems Purpose ofAssignment The purpose of this assignment is to allow the studentto calculate the project cash flow using net present value (NPV),internal rate of return (IRR), and the payback methods. AssignmentSteps Resources: Corporate Finance Calculate the following timevalue of money problems in Microsoft Excel or Word document. Youmust show all of your calculations. If you want to accumulate$500,000 in 20 years, how much do you need to deposit today thatpays an interest rate of 15%? What is the future value if you planto invest $200,000 for 5 years and the interest rate is 5%? What isthe interest rate for an initial investment of $100,000 to grow to$300,000 in 10 years? If your company purchases an annuity thatwill pay $50,000/year for 10 years at a 11% discount rate, what isthe value of the annuity on the purchase date if the first annuitypayment is made on the date of purchase? What is the rate of returnrequired to accumulate $400,000 if you invest $10,000 per year for20 years. Assume all payments are made at the end of the period.Calculate the project cash flow generated for Project A and ProjectB using the NPV method. Which project would you select, and why?Which project would you select under the payback method? Thediscount rate is 10% for both projects. Use Microsoft® Excel® toprepare your answer. Note that a similar problem is in the textbookin Section 5.1. Sample Template for Project A and Project B: Showall work. Submit the all calcluations. Click the Assignment Filestab to submit your assignment.