Investment Analysis) Your classmate Amna has decided to invest in an automated espresso machine for her dorm room to eliminate her expenditure on coffee from Starbucks without reducing her enjoyment of high quality coffee. She plans to purchase the coffee machine for $750. She expects to be able to use the machine for her two remaining years at Columbia. Upon graduation, she will likely give the machine away if it is still working. She currently buys 2 coffees every day at Starbucks on weekdays and 1 coffee every day on weekends. Each coffee costs $3. She spends 36 weeks of the year on campus. When she is away from campus, she cannot use her coffee machine and must buy coffee from Starbucks. Assume that she values her own time at the work-study hourly rate of $15 per hour. Assume that Amna will be financing the coffee machine with debt which carries an interest rate of 15% per annum. Make reasonable assumptions about the following: The amount and cost of coffee beans she must buy per week to support her coffee drinking habit. The value of time spent making coffee with her machine and cleaning up rather than walking back and forth to Starbucks. The value of the possibility of sharing coffee with her dorm-mates. Any other quantifiable factors you believe she should include in her investment analysis.

Build an Excel spreadsheet that allows you to compute the NPV and the internal rate of return of Amnas investment in the coffee machine. You may want to use the Wind Power spreadsheet we reviewed in class as a guide. Make sure that your spreadsheet allows the user to easily change the assumptions made above.