Analyze this investment opportunity and make a recommendation using the following 2 methods:

Data for capital investment problem NPV approach to capital budgeting Investment Opportunity: Whatchit Purchase Price: 25,000.00 Useful Life: 5 years Cost of Capital: 9.00% YEAR 0 1 2 Data: Cash in Cash out Net Flow PV 0 $25,000.00 $(25,000.0 25,000.00 6,000 3,000 3,000 8,000 3,000 5,000 9,000 3,000 6,000 7,000 3,000 4,000 18,000 3,000 15,000 $8,000.00 3 Summary of annual cash flows 4 5 YEAR NPV 0 1 2. Cash in Cash out Net Flow 25,000.00 $(25,000.00) 6,000 3,000 3,000 8,000 3,000 5,000 9,000 3,000 6,000 7,000 3,000 4,000 18,000 3,000 15,000 $ 8,000.00 IRR approach to capital budgeting 3 4 Input the assumed cost of capital 5 PV Instructions: Analyze this investment opportunity and make a recommendation using the following 2 methods: YEAR CASH IN CASH OUTNET FLOW 0 -00 25,000 (25,000) 1 6,000 3,000 3,000 2 8,000 3,000 5,000 3 9,000 3,000 6,000 4 7,000 3,000 4,000 5 18,000 3,000 15,000 NPV $8,000.00 * NPV * IRR (must be 0) Invest or not