A$=1$

B$=2$

C$=3$

D$=4$

PROBLEM $3$: BUSINESS INVESTMENT DECISIONS

Business is now booming due to the expansion made possible the investor. After paying off the loan, you still have a

significant savings which you decide to invest.

WinTech purchases $10(70+B-C+D)$ shares of a publicly traded video game company. WinTech holds the shares

for three years and then sells them. The following table summarizes the price per share when they were purchased and

when they were sold.

The following table summarizes cash dividends that were received from the investment during the holding period:

WinTech's required rate of return for investments in the stock market is $15\%.$

a$)$ On the "Problem $3"$ excel worksheet, create two tables to hold the values defined above, one table for calculating

the purchase price per share and sale price per share, and another table for indicating dividends received per share

per year. Create a third table to indicate the cashflow for each year. Copy each of these tables into the Word

document template provided for your answers.

Also using the Excel worksheet, use formulas to answer the following:

b$)$ What is the NPV of the investment? Was this a worthwhile investment?

c$)$ What is the maximum amount you should have paid for the shares?

d$)$ What internal rate of return was realized over the holding period? $($Use the IRR function in Excel.$)$