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Problem 3 Inputs discount rate Consider an investment project decision with the following inputs annual net revenue growth rate Initial investment 15.00% 12.00% Show
Problem 3 Inputs discount rate Consider an investment project decision with the following inputs annual net revenue growth rate Initial investment 15.00% 12.00% Show excel formulas for NPV and IRR below: -> (c) Would you invest in this project? Explain your answer (3 pts) (d) Given net revenue in years 1 through 6 that you have calculated in part a, what is the maximum initial investment you would be willing to make and still invest in the project? (7 pts) Answer: (e) Explain how to answer this question using Solver (10 pts) In Solver (fill in or leave empty appropriate cells below) Set objective: To: By Changing variable cells: Subject to the constraints:
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
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