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******USE EXCEL TO CALCULATE********** Based on the following information, calculate net present value (NPV), internal rate of return (IRR), and payback for the investment opportunity:

******USE EXCEL TO CALCULATE**********

Based on the following information, calculate net present value (NPV), internal rate of return (IRR), and payback for the investment opportunity:

  • EEC expects to save $500,000 per year for the next 10 years by purchasing the supplier.
  • EEC's cost of capital is 14%.
  • EEC believes it can purchase the supplier for $2 million.

******USE EXCEL TO CALCULATE**********

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