1. NPV Calculation: Goal - Calculate the Net Present Value of the project to determine its viability. a. Use the "=NPV()" function in Excel. Input the discount rate and the series of cash inflows. b. Add the initial investment cost (as a negative value) to the NPV formula result to get the total NPV. c. Record your result in the Excel sheet. 2. IRR Calculation: Goal - Find the Internal Rate of Return to assess the project's profitability. a. Use the "=IRR()" function. Input the range of cash flows starting with the initial investment (negative value) followed by the cash inflows. b. Highlight the calculated IRR in your Excel sheet. 3. Payback Period Calculation: Goal - Determine the period it takes for the project to recoup its initial investment. a. Create a cumulative cash flow column in Excel. b. ldentify the year in which the cumulative cash flow turns positive. This year indicates the payback period. 3. Discount Rate (Cost of Capital): 8% * This rate will be used to discount the future cash flows to their present values for NPV and IRR calculations. Breakdown of Cash Flows (in $): e Year 1: $25,000 e Year 2: $30,000 e Year 3: $35,000 e Year 4: $28,000 e Year 5: $32,000 Assumptions: e The initial investment cost of $100,000 is incurred at the beginning of the project. e Cash inflows occur annually at the end of each year. e The discount rate of 8% reflects the opportunity cost of capital or the required rate of return for the project. J ChatGPT Certainly! Here's a hypothetical dataset for your assignment: Investment Project Details: 1. Initial Investment Cost: $100,000 e This is the amount required to start the investment project. 2. Expected Annual Cash Inflows: e Year 1: $25,000 e Year 2: $30,000 e Year 3: $35,000 e Year 4: $28,000 e Year 5 $32,000 These cash inflows represent the expected earnings from the project each year over its 5-year lifespan. v