You are a restaurant entrepreneur considering two new business endeavors.

"Southern Sushi" blends southern comfort food with sushi. You expect that the restaurant would require an up-front investment (at time 0) of $90,000. Cash flows are expected to be $10,000 in year 1 and grow at 6% for the subsequent 10 years (so there would be 11 cash flows, in addition to the year 0 cash flow) at which point the project would shut down.

"Really, Truly Texas Barbeque (RTTB)" is the other possible business venture. The project would require an up-front investment (at time 0) of $80,000. Cash flows are expected to be $8,000 in year 1 and grow at 7% for the subsequent 10 years. The project would then shut down.

Assume that you can execute at most one of these projects. The discount rate for both projects is 8%. Compute the NPV and IRR associated with each project and make a recommendation regarding how to proceed (given the assumptions described above).

Then conduct a sensitivity analysis for the project you recommend. Examine how the NPV is impacted by different assumptions for both discount rate and cash flow growth rate (in one data table).