INSTRUCTIONS:

For the two projects below determine the NPV and IRR of each at a discount rate of $8\mathrm{.}70\%.$ Next use "Goal Seek" to find the

"Rate of Ambivalence".

If interest rates are going up which project do you choose? $($Use the one$-$way data table to assist you.$)$

NPV

IRR

Rate of Ambivalence

Discount Rate

$10\mathrm{.}0\%$

$10\mathrm{.}5\%$

$11\mathrm{.}0\%$

$11\mathrm{.}5\%$

$12\mathrm{.}0\%$

$12\mathrm{.}5\%$

$13\mathrm{.}0\%$

$13\mathrm{.}5\%$

$14\mathrm{.}0\%$

$14\mathrm{.}5\%$

$15\mathrm{.}0\%$

$15\mathrm{.}5\%$

$16\mathrm{.}0\%$

$16\mathrm{.}5\%$