pls show formula and solution not in spreadsheet form Year project x project y project z 0 -1,000,000 -1,000,000 -1,200,000 1 500,000 200,000 200,000 2 400,000 300,000 300,000 3 300,000 400,000 400,000 4 200,000 500,000 500,000 *WACC is 12% 1. What is the NPV of project X? 2. What is the payback period of project Y? 3. What is the payback period of project Z? 4. What is the NPV of project Z? 5. What is the payback period of project X? 6. What is the NPV of project Y? 7. Based on the calculated NPVs and payback period, which project would you recommend? State the implications.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.18E
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pls show formula and solution not in spreadsheet form

Year project x project y

project z

0 -1,000,000 -1,000,000 -1,200,000
1 500,000 200,000 200,000
2 400,000 300,000 300,000
3 300,000 400,000 400,000
4 200,000 500,000 500,000

*WACC is 12%

1. What is the NPV of project X?

2. What is the payback period of project Y?

3. What is the payback period of project Z?

4. What is the NPV of project Z?
5. What is the payback period of project X?

6. What is the NPV of project Y?

7. Based on the calculated NPVs and payback period, which project would you recommend? State the implications.

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