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Excel Finance Functions Answers

The document contains financial calculations for multiple scenarios: 1) Calculating the net present value of salaries over 6 years for an NBA player as $21.5 million 2) Finding the internal rate of return for an oil well that costs $50 million to drill and will generate $5 million in revenue annually for 20 years is 7.6% 3) The monthly payment on a 30-year $300,000 loan at 8% annual interest is $2,201.29 4) The annual depreciation on a $4,000 machine with a $500 salvage value over a 5-year useful life is $700.

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69 views5 pages

Excel Finance Functions Answers

The document contains financial calculations for multiple scenarios: 1) Calculating the net present value of salaries over 6 years for an NBA player as $21.5 million 2) Finding the internal rate of return for an oil well that costs $50 million to drill and will generate $5 million in revenue annually for 20 years is 7.6% 3) The monthly payment on a 30-year $300,000 loan at 8% annual interest is $2,201.29 4) The annual depreciation on a $4,000 machine with a $500 salvage value over a 5-year useful life is $700.

Uploaded by

masuma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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NPV $ 21,506,146.

07
An NBA player will be a rookie in November 2010. Each year for six years he is paid $1 million a month during the m
1/15/2008 11/15/2010 12/15/2010 1/15/2011 2/15/2011 3/15/2011 4/15/2011
0 1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06
Assuming revenues have no cost and are received at beginning of year IRR
An oil company is going to drill a well costing $50 million of 5/15/2009. For each of the next 20 years they expect to
5/15/2009 6/30/2010 6/30/2011 6/30/2012 6/30/2013 6/30/2014 6/30/2015
-50 5 5 5 5 5 5
What is the monthly payment (assuming end of month payments) on a 30 year $300,000 loan?
rate Payment since rate is not given you may enter any annual rate.
0.08 ($2,201.29)
What is the annual depreciation we can charge on a $4000 machine with a salvage value of $500 and a five year use
$700.00
Note: I added 365 days to get date in next year so I am off a day or 2

id $1 million a month during the months of November-April. If his discount rate is 10% per year what is the NPV of his salaries as of Januar
11/15/2011 12/15/2011 1/15/2012 2/15/2012 3/15/2012 4/15/2012 11/15/2012 12/15/2012
1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06
0.076
of the next 20 years they expect to receive $5 million in revenues. Assuming each year's revenue is concentrated midyear, what is the IRR
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023
5 5 5 5 5 5 5 5
300,000 loan?

e value of $500 and a five year useful life?


he NPV of his salaries as of January 15, 2008?
1/15/2013 2/15/2013 3/15/2013 4/15/2013 11/15/2013 12/15/2013 1/15/2014 2/15/2014 3/15/2014
1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06

entrated midyear, what is the IRR for this oil well.


6/30/2024 6/30/2025 6/30/2026 6/30/2027 6/30/2028 6/30/2029
5 5 5 5 5 5
4/15/2014 11/15/2014 12/15/2014 1/15/2015 2/15/2015 3/15/2015 4/15/2015 11/15/2015
1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06
12/15/2015 1/15/2016 2/15/2016 3/15/2016 4/15/2016
1.00E+06 1.00E+06 1.00E+06 1.00E+06 1.00E+06

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