1. The tables are:

[Insert the two tables here.]

2. [Provide your answer and explain how you found it.]
3. [Provide your answer and explain how you found it.]
4. [Provide your answer and explain how you found it.]

A=4 B=6 C=9 D=0

3) PROBLEM 3: BUSINESS INVESTMENT DECISIONS Business is now booming due to the expansion made possible the investor. After paying off the loan, you still have a significant savings which you decide to invest. WinTech purchases 10(70 +B-C + D) shares of a publicly traded video game company. WinTech holds the shares for three years and then sells them. The following table summarizes the price per share when they were purchased and when they were sold. PAGE 3 Price per share at purchase (5) 35+ A+B+ 10 Price per share at sale (5) A 61 +C+D+ 10 The following table summarizes cash dividends that were received from the investment during the holding period: Year 1 Dividends per share (5) 15+ A + 2C-D 100 27-A-B + 2D 100 36 + A-2B-C 100 2 3 WinTech's required rate of return for investments in the stock market is 15%. a) On the "Problem 3"excel worksheet, create two tables to hold the values defined above, one table for calculating the purchase price per share and sale price per share, and another table for indicating dividend received per share per year. Create a third table to indicate the cashflow for each year. Copy each of these tables into the Word document template provided for your answers. Also using the Excel wrksheet mye formulas townswer the following: b) What is the NPV of the investment? Was this a worthwhile investment? c) What is the maximum amount you should have paid for the shares? d) What internal rate of return was realized over the holding period? (Use the IRR function in Excel.) Price per share at Price per share at purchase (s) sale (S) Year Dividends per share (S) 2014 2015 2016 shares purchased NPV = Maximum that should be paid = Rate of return = Cash Flow Year 0 1 2 3 3) PROBLEM 3: BUSINESS INVESTMENT DECISIONS Business is now booming due to the expansion made possible the investor. After paying off the loan, you still have a significant savings which you decide to invest. WinTech purchases 10(70 +B-C + D) shares of a publicly traded video game company. WinTech holds the shares for three years and then sells them. The following table summarizes the price per share when they were purchased and when they were sold. PAGE 3 Price per share at purchase (5) 35+ A+B+ 10 Price per share at sale (5) A 61 +C+D+ 10 The following table summarizes cash dividends that were received from the investment during the holding period: Year 1 Dividends per share (5) 15+ A + 2C-D 100 27-A-B + 2D 100 36 + A-2B-C 100 2 3 WinTech's required rate of return for investments in the stock market is 15%. a) On the "Problem 3"excel worksheet, create two tables to hold the values defined above, one table for calculating the purchase price per share and sale price per share, and another table for indicating dividend received per share per year. Create a third table to indicate the cashflow for each year. Copy each of these tables into the Word document template provided for your answers. Also using the Excel wrksheet mye formulas townswer the following: b) What is the NPV of the investment? Was this a worthwhile investment? c) What is the maximum amount you should have paid for the shares? d) What internal rate of return was realized over the holding period? (Use the IRR function in Excel.) Price per share at Price per share at purchase (s) sale (S) Year Dividends per share (S) 2014 2015 2016 shares purchased NPV = Maximum that should be paid = Rate of return = Cash Flow Year 0 1 2 3