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Review the following data concerning the amount of capital investment and return of investment for two alternative projects. Project/ Year 0 1 2 3 4

Review the following data concerning the amount of capital investment and return of investment for two alternative projects.

Project/

Year

0

1

2

3

4

A

-$124,000

$32,000

$44,000

$50,000

$50,000

B

-$211,000

$72,000

$75,000

$77,000

$80,000

Use Excel to calculate the NPV values for the two projects with the discount rates of 5%, 15% and 20% using proper formula in Excel.

Provide a two-page narrative to:

  1. Describe the steps you took to calculate the NPV values
  2. Explain your findings
  3. Specify which project you would choose.

Include an excerpt (showing your calculations and outcomes) from your Excel file in your narrative and specify the formula you used.

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