A B C D E F 1 Capital Investment Decisions and the Time Value of Money 2 Compute NPV - equal net cash inflows Woodsy Music is considering investing $625,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $90,000 per year for the next nine years. 4 6 Use the blue shaded areas on the ENTERANSWERS tab for inputs. 7 Always use cell references and formulas where appropriate to receive full credit. 11 b. 9 Requirements 10 1 What is the approximate internal rate of return (IRR) of the studio investment? a. Enter in the investment in cell A3 as a negative value. In the cell below, cell A4, type in the cash flow expected in Year 1. In the next cell below type in the cash flow expected in Year 2. Continue in the same fashion until all future cash flows are shown in separate cells, in the order in which they are expected to be received. Enter cash inflows as positive amounts and cash outflows as negative amounts. Enter the IRR in the cell below the last cash flow in column A using the IRR Excel function. A B C D E F G Always use cell references and formulas where appropriate to receive full credit.) H I J K L M N O P Q R S T U V W 1