posted by Mitch .
A company is thinking of investing some surplus cash in 30 year $1000 face value Microsoft 6% annual coupon bonds. It plans to pay $925 each for 10,000 of them, now, and expects to SELL them for $1025 each at the end of 5 years.
Make a determination about the economic viability of the proposal using 3 capital budgeting methods
So how would we break this information down to figure out the simple payback, NPV and IRR using excel?