Please do it in excel format and answer the question at the end of the document. please send turnitin. Please follow all the instructions in the document and all the steps.
Belgravia Petroleum Inc. is trying to evaluate a generation project with the following cash flows:
-
Year
Cashflow
0
-$300,000,000
1
$63,000,000
2
$85,000,000
3
-$50,000,000
4
$145,000,000
5
$175,000,000
6
-$50,000,000
7
$70,000,000
8
$72,000,000
Construct a spreadsheet and calculate the following (the required rate of return is 12%):
Payback period
Discounted payback period
Internal rate of return (IRR)
Modified IRR
The discounting approach
The reinvestment approach
The combination approach
Net present value (NPV)
Based on your analysis, should the company take the project? Why?