Applying Tableau Analytics $14-01($Static$)$ Net Present Value Analysis $[$LO$14-2]$

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To complete this exercise, you will need to download and install Tableau on your computer. Tableau provides free instructor and student licenses as well as free videos and support for utilizing and learning the software. Once you are up and running with Tableau, watch the three "Getting Started" Tableau videos. All of Tableau$$s short training videos can be found here.

$[$The following information applies to the questions displayed below.$]$

Jefferson Company is a merchandiser located in western North Carolina. You serve on the company$$s capital budgeting review committee whose purpose is to evaluate all capital investment proposals and then provide an $$accept or reject$$ recommendation to the CEO. Recently, your committee provided a $$reject$$ recommendation on a specific proposal based on the following net present value analysis $($NPV$)$:

An excel sheet containing $6$ columns and $11$ rows. Column $1$ contains entries, columns $2$ to $5$ contain dollar values except row $9$ which contains values.

The group of employees that submitted this request is disappointed that you provided a $$reject$$ recommendation for its proposal. The group does not understand why working capital is treated as a $$100,000$ cash outflow now and a $$100,000$ cash inflow at the end of the project. To explain your accounting for working capital in the NPV analysis shown above, you decide to proceed in two steps. First, you will explain how to calculate the annual opportunity costs that arise from tying up $$100,000$ of working capital for four years. Second, you will create a data visualization that summarizes these calculations.

Download the Excel file, which you will use to create the Tableau visualization that aid your explanation.

Upload the Excel file into Tableau by doing the following:

Upload the Excel file into Tableau by doing the following:

Open the Tableau Desktop application.

On the left$-$hand side, under the $$Connect$$ header and the $$To a file$$ sub$-$header, click on $$Microsoft Excel.$$

Choose the Excel file and click $$Open$.$

Since the only worksheet in the Excel File is $$Calloway Company$$ it will default as a selection with no further import steps needed

Applying Tableau Analytics $14-01($Static$)$ Part $1$

Assume the company$$s discount rate of $20\%($as shown in cell A$9$ of the above Excel screen capture$)$ represents its opportunity cost of capital. In other words, it represents the annual return that the company could earn if it invested $$100,000$ in an alternative capital budgeting proposal, rather than committing it to this project$$s working capital needs.

Required:

$1$a$.$ Without considering the time value of money, how much return could Jefferson earn each of the next four years by investing $$100,000$ elsewhere in the company?

$1$b$.$ Considering the time value of money $($and using the discount factors for years $1-4$ as shown in the above Excel screen capture$),$ what is the present value of the annual opportunity costs from requirement $1?$