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2. Complete the following timeline to compute the net present value of the future cash flows for this project. Don't forget to include the
2. Complete the following timeline to compute the net present value of the future cash flows for this project. Don't forget to include the salvage value in year Net cash flow Discount Factor =1/((1+r)^n) Present value of the cash flows Net present value 0 $ (1,750,000.00) 1.000 1 Year 2 3. Use Excel's NPV function to compute the present value of the cash flows from years 1-5. Do not include the original investment at time zero. NPV of Cash Flows from Years 1-5 Deduct the cost of the investment Net present value Write an if/then statement to ACCEPT or REJECT the project based on NPV 4. Use Excel's IRR function to compute the project's internal rate of return Write an if/then statement to ACCEPT or REJECT the project based on IRR 5. Compute the project's payback period. 5. Compute the project's accounting rate of return. years 3 F G D E oute the net present value of the future cash flows for this project. Don't forget to include the salvage value in year 5. Year $ (1,750,000.00) 1.000 1 2 e present value of the cash flows from years 1-5. Do not include the original investment at time zero. EJECT the project based on NPV project's internal rate of return EJECT the project based on IRR return. years 3 4 5
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