Option #1: NPV
Review the following data concerning the amount of capital investment and return of investment for two alternative projects.
Project/
Year
0
1
2
3
4
A
-$124,000
$32,000
$44,000
$50,000
$50,000
B
-$211,000
$72,000
$75,000
$77,000
$80,000
Use Excel to calculate the NPV values for the two projects with the discount rates of 5%, 15% and 20% using proper formula in Excel.
Provide a two-page narrative to:
- Describe the steps you took to calculate the NPV values
- Explain your findings
- Specify which project you would select for each of the discount rates of 5%, 15%, and 20%.
Include an excerpt (showing your calculations and outcomes) from your Excel file in your narrative and specify the formula you used
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