NPV Analysis; Sensitivity Analysis; Data Tables in Excel This assignment is designed to introduce you to the preparation of both a one-variable and a two-variable Data Table in Excel. Such tables are useful for conducting and reporting the results of a series of what-if analyses. Assume that a hypothetical 5-year investment would require a net investment outlay of $350,000 and would have annual (after-tax) cash inflows of $100,000. Assume, too, that the company considering this investment uses a 10% discount rate (weighted-average cost of capital) for present-value calculations. Required 1. Consult the specified online help file (Microsoft website) regarding the preparation of Data Tables. (See footnote 27.) 2. Prepare a one-variable Data Table where you depict the NPV of the proposed investment at each of the following discount rates: 8% to 12%, in increments of 0.5%. Round your answers to nearest whole dollar. 3. Prepare a two-variable Data Table where, in addition to the 10 discount rates assumed in requirement 2, you want to consider three possible levels of after-tax cash inflows per year: $90,000, $100,000, and $110,000. (Thus, your table will include 10 × 3 = 30 cells.) Round your answers to nearest whole number.
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