Question
Excel function XNPV Questions CFO Azar is trying to decide whether to make an investment that requires an initial investment of $9 million. Investment A
Excel function XNPV Questions
CFO Azar is trying to decide whether to make an investment that requires an initial investment of $9 million. Investment A will return $923,812 at the end of each year for three years, and then$1,226,640, four times, once every 90 days. At the end o this period, CFO Azar can sell the assets of the comapny for $4 million. Should CFO Azar make the investment if the discount rate is 5%?(Hint:Count each year from the time of initial investment. If initial investment is on July 10,2015, end of one year is July 10,2015 + 365 days = June 30,2015)
A Yes, the investment generates a profit of more than $900,000
B Yes, the investment generates a profit of $192,412
C No, the investment makes a loss of $78,212
D It makes no difference; the investment breaks even
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