NPV is a tool to compare alternative investment options in terms of present day dollars. Jackson Aviation has several proposals for new Jet introductions. The following data provides the initial fixed investment and projected cash flows for the first five years for this new aircraft. You must prepare the NPV and IRR calculations for each alternative presented and then discuss how you would rank the investments and propose a recommendation, considering the fact that capital resources may be limited, requiring the company to make some consumption choices on these investments.

	Cash Flow
Period	Option A	Option B	Option C
0	(75,000,000.00)	(25,000,000.00)	(65,000,000.00)
1	(325,000,000.00)	(100,000,000.00)	(275,000,000.00)
2	(125,000,000.00)	(50,000,000.00)	(110,000,000.00)
3	50,000,000.00	25,000,000.00	50,000,000.00
4	133,000,000.00	85,000,000.00	125,000,000.00
5	555,000,000.00	175,000,000.00	375,000,000.00

make recommendations based on the NPV calculations. Discuss the relevance of the NPV results using different discount rates. Compare NPV and IRR concepts.

1. Use the Excel SUM formula to calculate the total of the projected cash flows.
2. Use the Excel NPV formula to calculate the net present value of this investment proposal using discount rates from 2% up to the rate you feel is appropriate, using increments of 1%.
3. Compute the Internal Rate of Return for each Option.
4. Prepare any charts you feel will be helpful in this analysis.