At your workplace or business, find or come up with a project that requires a capital outlay. Then, figure out the project$$s cash flows over time $($the initial outlay and the future cash inflows$).$ Assume the project has a lifespan $($e$.$g$.,$ five years, $10$ years$)$ and a certain cost of capital $($e$.$g$.,10\%$ per year$).$

a$.$ Calculate the project$$s payback period, net present value, internal rate of return, modified internal rate of return, and profitability index.

b$.$ Would you take on this project? Why or why not?

c$.$ If the project$$s NPV is greater than zero, would it add value to the company?

d$.$ Complete the project using Excel. Be sure to show formulas and calculations.

e$.$ In the Excel worksheet, please include a $45$ paragraph summary of your findings $($e$.$g$.,$ is the project a good idea$)$ and also the responses to the questions $($a$,$ b$,$ and c$).$

f$.$ Please make sure the numbers and results are presented in a professional manner $($i$.$e$.,$ the spreadsheet must look clean and organized$).$ See the rubric for grading.

Here is an example to get you started $($however$,$ you must find your own real$-$world example$)$:

DPL Therapeutics is contemplating investing in a project: a new medical device to help alleviate back pain. The investment will cost $$1,000,000$ and will provide future cash inflows for the next $10$ years of $$120,000$ per year. The cost of capital is $10\%$ per year.