Your first assignment requires you to become a finance advisor tasked with offering your opinion regarding four potential investments:

Investment 1. Establishing and operating a consulting service expecting to service long-term growth.

Investment 2. Establishing and operating a small fashion store expecting to profit from a passing fad.

Investment 3. Invest into a portfolio of preferred stocks paying a fixed annual income.

Investment 4. Establishing and operating a fast food franchise.

All the projects have the same initial outlay of $50,000 except for the franchise option requiring an initial outlay of $500,000. The cash flows from each project are as follows:

Year Consulting Service Fashion Store Preferred Stock Franchise

Rate 10%

Calculate the NPV, IRR, and Non-Discounted Payback Period using Excel. (Note: The Non-Discounted Payback Period is simply the number of years needed to operate as to recover the initial outlay.) Take a stance on which option provides the best investment given a desired rate of return of at 40%. Take a stance on which option provides the worst investment given a desired rate of return of at 40%.

You may want to use Excel?s NPV() and IRR() functions to figure NPV and IRR.

*I found the NPV I believe, having trouble with the rest*

Consulting Service Year Outlay 50000 1 2 3 4 5 6 Discount Rate Net Present value Internal Rate of Return $20,000 $30,000 $60,000 $80,000 $150,000 $400,000 10% $2,117.82 Fashion Store Year Outlay 50000 1 2 3 4 5 6 Discount Rate Net Present value $40,000 $60,000 $80,000 $600,000 $250,000 20,000 20% $517,815.50 Preferred Store Year Outlay 50000 1 2 3 4 5 6 Discount Rate Net Present value $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 20% $750.00 Franchise Year Outlay 50000 1 2 3 4 5 6 Discount Rate Net Present value $100,000 $350,000 $350,000 $300,000 $300,000 $280,000 20% $5,594.97