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QUESTION

Solve the problems below using well-formatted Excel solutions. Do not hardcode numbers in the formulas.only use cell references to the input data.

Solve the problems below using well-formatted Excel solutions. Do not hardcode numbers in the formulas.....only use cell references to the input data. I will change the input data in your problem to check alternate solutions. This assignment is to be solely your own work, do not work with others or ask for help. You will turn in a complete working Excel spreadsheet with your solution.

A. A firm is considering the two mutually exclusive investments projects. Project Alpha requires an initial outlay of $600 and will return $160 per year for the next seven years; Project Beta requires an initial outlay of $1,100 and will return $350 per year for the next five years. Assuming a 11% required return, calculate the NPV, IRR, Payback Period, PI, and MIRR of each project. Which project is preferable and why? 

B. 1)   What is the price of a semiannual $1,000 par value bond with four years left until maturity that pays a coupon of 3.75% and is yielding 5.25%? What would it be yielding if the price decreased to $973.47? Assume semiannual compounding for both.

2)   Coffee shop chain Java the Hut just paid a $2.70 dividend. There are two possible pricing scenarios:

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