SPREADSHEET PROBLEM (10­23) Build a Model: Capital Budgeting Tools Start with the partial model in the file Ch10 P23 Build a Model.xls on the textbook’s Web site. Gardial Fisheries is considering two mutually exclusive investments. The projects’ expected net cash flows are as follows: Expected Net Cash Flows Year Project A Project B 0 -$375 −$575 1 −300 190 2 −200 190 3 −100 190 4 600 190 5 600 190 6 926 190 7 −200 0 a. If each project’s cost of capital is 12%, which project should be selected? If the cost of capital is 18%, what project is the proper choice? b. Construct NPV profiles for Projects A and B. c. What is each project’s IRR? d. What is the crossover rate, and what is its significance? e. What is each project’s MIRR at a cost of capital of 12%? At r = 18%? (Hint: Consider Period 7 as the end of Project B’s life.) f. What is the regular payback period for these two projects? g. At a cost of capital of 12%, what is the discounted payback period for these two projects? h. What is the profitability index for each project if the cost of capital

The organization’s strategic plan you wrote about in Week 2 calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, and labor over the next five years.  It is your responsibility to determine how the U.S economy during this five year period will impact such an aggressive growth plan. To do so, you should:

Develop a 1,500-1,800 word economic outlook forecast that includes the following:

  • Analyze the history of changes in GDP, savings, investment, real interest rates, and unemployment and compare to forecast for the next five years.
  • Discuss how government policies can influence economic growth.
  • Analyze how monetary policy could influence the long-run behavior of price levels, inflation rates, costs, and other real or nominal variables.
  • Describe how trade deficits or surpluses can influence the growth of productivity and GDP.
  • Discuss the importance of the market for loanable funds and the market for foreign-currency exchange to the achievement of the strategic plan.
  • Recommend, based on your above findings, whether the strategic plan can be achieved and provide support.

Use a minimum of 3 peer-reviewed sources from the University Library.

Format your paper consistent with APA guidelines. See the Instructor’s Policies document for a partial list of APA requirements