1;. Investment in a startup company {11 points): Given the volatility of the stock market, you are considering investing in a startup company. You must decide between two companies that are actively seeking investors, both of which are led by some former colleagues of yours. You have received offers from each of the companies, the details of' which are provided below. Your MARR is 10% compounded annually. - TI'J'vF Technologies Inc. - Immediate $20,000 investment followed by an investment of$ 10,000 in 10 years. Revenues in the form of scheduled annual payments over the next 25 years: $1,000 per year for the rst 5 years, $5,000 per year for the next 5 years and $15,000 per year forthe last 15 years. .. Reverse Engineering Inc. Immediate $10,000 investment. - Revenues in the form of scheduled annual payments over the next 25 years: $3,000 per year for the first 10 years and $5,000 per year for the last 15 years. (a) Draw cash ow diagrams to represent each investment option. (2 points} {b} Compute the payback period as well as the discounted payback period for each investment. Use conditional formatting to highlight, for each investment, those years prior to the initial invested capital being fully recovered. Based on the discounted payback period, which one is the best investment?{2 points) {c} Compute the present worth of each investrnent. Based on the results obtained, which one is the best investment? [2 points) {d} For the TDV Technologies Inc. case only, compute the present worth for MARRs of 5%, 10%, 15%, 20% and 25%. Use a data table. [2 points) {e} Plot the present worth of TDV Technologies Inc. as a function of the MARE. (1 point] (f) Using the Goal Seek function, determine the value of the MARR that leads to a zero present worth for the investment in TDV Technologies Inc. Validate your solution by referring to the previously prepared graph of PW vs. MARR. What does the calculated MARR represent (i.e., how should it be interpreted)? (2 points) (g) Use the IRR function to calculate the internal rate of return of the TDV Technologies Inc. investment. What may be observed by comparing this value to the one found in the previous step? (1 point)