ONLY USE EXCEL! DO NOT HARD CODE NUMBERS.

A. what is the NPV of the project at a discount rate r=6%?

B. Do you want to invest in the project at r=6%?

C. Would you chnage your mind if r=4%?

D. What is the IRR of the project?

V fx | B8 x A 1 Time 2 Cash flow H B 1 -1000 C 2 100 D 3 E 4 F 5 300 G 6 200 300 300 3 4 [Note: Cash-flows start one year from today] 5 NPV, r=6% 6 NPV, r=4% 7 IRR 8 9 10 11 12