Use Microsoft Excel to assess the NPV of an IT initiative. The initiative will require an initial

Question:

Use Microsoft Excel to assess the NPV of an IT initiative. The initiative will require an initial investment of $250,000 and is expected to return $150,000 per year for the next 3 years.
Assume a discount rate of 10 percent. What is the NPV? How does the NPV change if the discount rate is 15 percent? Describe how changes in the discount rate assumption can affect the NPV.

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...