1 D NPV =NPV(rate,value1,value2) Calculates the net present value. 2 3 rate 4 5 Your company has an investment opportunity, and it is trying to figure out if it's worth it. Here's what's known about this investment opportunity: Today: the company would need to invest $350,000 In 1 year: the company would receive a profit of $200,000 In 2 years: the company would receive a profit of $200,000 In 3 years: the company would receive a profit of $50,000 In 4 years: the company would receive a profit of $30,000 The required return is 11% Formula =NPV(B5:B10,05) Result $1,387.20 0.08 6 7 Cash Flows 500 250 250 250 250 250 8 9 10 After doing all sorts of calculations and analyses, the company made the following several conclusions. Which ones are CORRECT and which ones are INCORRECT? (1) The Net Present Value of this investment opportunity equals - $4,407.38. v (Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to TWO decimal places: for example, 10,000.23.) (2) Based on the Net Present Value approach, an investment opportunity with the Net Present Value of -$4,407.38 should be rejected. (3) For an investment opportunity with the Net Present Value of -$4,407.38, the dollar amount representing the initial cost required for this investment opportunity, is less than the discounted value of all future profits. (4) The Profitability Index of the investment opportunity given in the bullet points above is less than 1