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Lab Insight: Apply the same steps in Lab $9\mathrm{.}5$ Excel to the Alt Lab $9\mathrm{.}5$ Data.xIsx dataset.

Vern Richardson is trying to evaluate the profitability of four investments over an eight$-$year horizon. Use the Excel NPV$0$ function to evaluate these four potential investments over the life of their cash flows.

Required:

Use NPV to evaluate the potential investments.

Open Excel file Alt Lab $9\mathrm{.}5$ Data.xlsx and perform the NPV analysis. Assume the cost of capital is $6$ percent.

Data: Alt Lab $9-5$ Data.xIsx

Analyze the Data: Refer to lab $9\mathrm{.}5$ in your text for additional instructions and steps.

Answer the following questions based on the details computed.

$\backslash$table$[[$Question$,$Answer$],[1.$ According to the NPV analysis, which investment is least profitable over the life of the investment?,Investment $2],[\backslash$table$[[2.$ What would be the NPV for a company that has a $7\%$ cost of capital, makes a $$100,000$ investment in year $0,$ and then$],[$receives $$21,000$ per year each of the next eight years? $($Round to the nearest whole dollar.$)]],],[\backslash$table$[[3.$ What are the net cash flows $($not discounted$)$ for a company that makes a $$100,000$ investment in year $0,$ and then$],[$receives $$21,000$ per year each of the next eight years? $($Round to the nearest whole dollar.$)]],$$