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Consider an investment project decision with the following inputs: discount rate 1 5 % , annual net revenue growth rate 1 2 % , initial

Consider an investment project decision with the following inputs: discount rate 15%, annual net revenue growth rate 12%, initial investment 3,000,000 revenue 750,000Problem 3
Consider an investment project
decision with the following inputs
(a) complete table below (8 pts)
(b) Calculate NPV and IRR (8 pts)
Show excel formulas for NPV and IRR below:
NPV:
IRR:
(c) Would you invest in this project? Explain your answer (3 pts)
(d) Given net revenue in years 1 through 6 that you have calculated in part a, what is the
maximum initial investment you would be willing to make and still invest in the project? (7 pts)
Answer:
(e) Explain how to answer this question using Solver (10 pts)
In Solver (fill in or leave empty appropriate cells below)
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