Answer the following questions related to the Excel NPV exercise. Just several short paragraphs should be enough.
You are the decision maker and you have three alternative projects for your consideration. You can only recommend one to the CEO. Do the calculations on the Excel spreadsheet and answer these questions. Upload each document separately or cut and paste the Excel answers into the Word document.
What is your recommendation for which alternative solution is best for each of the discount rates?
Did your recommendation change with the different discount rates? Why should you use a range of interest rates?
On the IRR tab, how do you interpret what the Internal Rate of Return means?
Attachment:- Take-Home Calculating_NPV_and_IRR-vs-4- class example.xls