We are using the same numbers that we used for the previous problems. Please use the same file you used for the pay back problems and add a tab marked NPV. This time you will compare the projects using the NPV method. Please use a 10% discount rate.

(Just need this excel file showing "PayBack Period method" and "Discounted Payback Period method" updated with a column for "NPV" at a 10% discount rate)

To get full credit please do the following:

Define the technique.

Discuss the difference between this method and the others we have used so far.

Analyze the numbers in the problem using an excel spreadsheet.

Use a 10% discount rate.

You must use Excel formulas which are on the ribbon in Excel marked Fx to make your calculations whenever possible. Do not write your own formulas unless absolutely necessary.

All information must be in Excel (Word documents will not be read and you will not get credit).

Remember to carry out your answers at least two decimal places.

Add a new tab on your original excel file and submit this project.

Project C Investment &Pay Back Period Present Value Discaunted Payback Investment&Cash Payback PeriodPresent Value Discounted Payback Investment & Payback Period Method ($3,200,DDD) Present Value Discounted Payback Flow Cash Flows Flaws method ($3,000,000) ($3,000,000) 495,868($2,504,132) S6T6,183($1,827,949) 2018 ($3,000,000) ($3,000,000 03,000,000) $600,000($2,400,000) $900,000$,500,000) ($3,000,000) $D.00 $3,DD0,000) $975,000 $975,000 $975,000 $1,000,000 $3,000,000)$3,000,000) ($3,000,000) ($2,113,636) ($1,307,851) $575,319) $107,694 $3.84 $3,200,000) 985,000 $925,000 $1,000,0ao $950,000 ($3,200,000) ($3,200,0DD) $2,304,545) ($1,540,083) ($788,76B) $139,905 (52,025,000)$886,363.64 2020 2021 2022 ($1,050,000) $805,785.12 ($75,000) S732,531.93 $683,01346 $2,215,000) $895,454.55 ($1,290,000) $764462.81 $751,314.80 $648,862.78 925,000 $683 ($290,000) $660,000 $1,500,000 $2,049,040 $221,091 $3.89 $3,000,000 Discount Rate 10% Payback Period Method: Traditional investment decision method, doesn't take the time-value of money into account but its easier than the discount payback method to calculate Discounted Payback Period Method: Modem investment decision method, takes the time value of money into account but it's more difficult to calculate than the payback period method. To see if a project is profiatble or not the discounted payback method is usually used, future cash flows are discounted back to the present period which reveals how long it will take to cover the initail investment made. Project B has the lowest discounted payback period making them the best choice for this project example