Just need help with the bottom bold part please Math is done Using net present value and internal rate of return to evaluate investment opportunities Dwight Donovan the president of Donovan Enterprises, is considering two investment opportunities Because of limited resources, he will be able to invest in only one of them Project A is to purchase a machine that will enable factory automation the machine is expected to have a useful life of four years and no salvage value Project B supports a training program that will improve the skills of employees operating the current equipment Initial cash expenditures for Project A are $400,000 and for Project B are $160,000 The annual expected cash inflows are $126,000 for Project A and $52,800 for Project B Both investments are expected to provide cash flow benefits for the next four years Donovan Enterprises desired rate of return is 8 percent Read the scenario and complete the activity below Use Excel showing all work and formulas to compute the following Compute the net present value of each project Round your computations to 2 decimal points Compute the approximate internal rate of return for each project Round your rates to 6 decimal points Create a PowerPoint presentation showing the comparison of the net present value approach with the internal rate of return approach calculated above Complete the following in your presentation Net present value computation Project A Project B Year Cashflows DCF 8 PV DCF 13 PV Year Cashflows DCF 8 PV DCF 13 PV a b c axb d e axd a b c axb d e axd (400,000) 1 0000 $ (400,000 00) 1 0000 $ (400,000 00) O O (160,000) 1 0000 $ (160,000 00) 1 0000 $ (160,000 00) 126,000 0 9259 $ 116,666 67 0 8850 $ 111,504 42 52,800 0 9259 $ 48,888 89 0 8850 $ 46,725 66 126,000 0 8573 $ 108,024 69 0 7831 $ 98,676 48 W N H W N H 52,800 0 8573 $ 45,267 49 0 7831 $ 41,350 14 126,000 0 7938 $ 100,022 86 0 6931 $ 87,324 32 52,800 0 7938 $ 41,914 34 0 6931 $ 36,593 05 126,000 0 7350 $ 92,613 76 0 6133 $ 77,278 16 4 52,800 0 7350 $ 38,809 58 0 6133 $ 32,383 23 Net present value S 17,327 98 $ (25,216 61) Net present value 14,880 30 $ (2,947 91) Comment Based on the NPV computations project A is recommended as it gives a higher NPV of $ 17,327 98 compared to $14,880 30 from porject B IRR (N1 x r2) (N2 x r1) x 100 IRR (N1 xr2) (N2 x r1) x 100 N1 N2 N1 N2 ($17,327 98 x 0 13) ( $25,216 61 x 0 08) x 100 S ($14,880 30 x 0 13) ($ 2,947 91 x 0 08) x 100 $ 17,327 98 ($25,216 61) $14,880 30 ($2,947 91) Project A 10 036449 Project B 12 173245

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Just need help with the bottom bold part. please. Math is done. Using net present value and internal rate of return to evaluate investment opportunities

Just need help with the bottom bold part. please. Math is done.

Using net present value and internal rate of return to evaluate investment opportunities Dwight Donovan the president of Donovan Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of four years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $400,000 and for Project B are $160,000. The annual expected cash inflows are $126,000 for Project A and $52,800 for Project B. Both investments are expected to provide cash flow benefits for the next four years. Donovan Enterprises desired rate of return is 8 percent.

Read the scenario and complete the activity below.

Use Excel?showing all work and formulas?to compute the following:

Compute the net present value of each project.Round your computations to 2 decimal points.
Compute the approximate internal rate of return for each project. Round your rates to 6 decimal points

Create a PowerPoint presentation showing the comparison of the net present value approach with the internal rate of return approach calculated above. Complete the following in your presentation:

Net present value computation Project A Project B Year Cashflows DCF @ 8% PV DCF @ 13% PV Year Cashflows DCF @ 8% PV DCF @ 13% PV a b c=axb d e=axd a b c=axb d e=axd (400,000) 1.0000 $ (400,000.00) 1.0000 $ (400,000.00) O O (160,000) 1.0000 $ (160,000.00) 1.0000 $ (160,000.00) 126,000 0.9259 $ 116,666.67 0.8850 $ 111,504.42 52,800 0.9259 $ 48,888.89 0.8850 $ 46,725.66 126,000 0.8573 $ 108,024.69 0.7831 $ 98,676.48 W N H W N H 52,800 0.8573 $ 45,267.49 0.7831 $ 41,350.14 126,000 0.7938 $ 100,022.86 0.6931 $ 87,324.32 52,800 0.7938 $ 41,914.34 0.6931 $ 36,593.05 126,000 0.7350 $ 92,613.76 0.6133 $ 77,278.16 4 52,800 0.7350 $ 38,809.58 0.6133 $ 32,383.23 Net present value S 17,327.98 $ (25,216.61) Net present value 14,880.30 $ (2,947.91) Comment - Based on the NPV computations project A is recommended as it gives a higher NPV of $ 17,327.98 compared to $14,880.30 from porject B. IRR (N1 x r2) - (N2 x r1) x 100 IRR = (N1 xr2) - (N2 x r1) x 100 N1 - N2 N1 - N2 ($17,327.98 x 0.13) - (-$25,216.61 x 0.08) x 100 S ($14,880.30 x 0.13) - ($-2,947.91 x 0.08) x 100 $ 17,327.98 - ($25,216.61) $14,880.30 - ($2,947.91) Project A = 10.036449% Project B = 12.173245%