Jefferson Company is a merchandiser located in western North Carolina. You serve on the companys capital budgeting review committee whose purpose is to evaluate all capital investment proposals and then provide an accept or reject recommendation to the CEO. Recently, your committee provided a reject recommendation on a specific proposal based on the following net present value analysis $($NPV$)$:

An excel sheet containing $6$ columns and $11$ rows. Column $1$ contains entries, columns $2$ to $5$ contain dollar values except row $9$ which contains values.

The group of employees that submitted this request is disappointed that you provided a reject recommendation for its proposal. The group does not understand why working capital is treated as a $$100,000$ cash outflow now and a $$100,000$ cash inflow at the end of the project. To explain your accounting for working capital in the NPV analysis shown above, you decide to proceed in two steps. First, you will explain how to calculate the annual opportunity costs that arise from tying up $$100,000$ of working capital for four years. Second, you will create a data visualization that summarizes these calculations.

Download the Excel file, which you will use to create the Tableau visualization that aid your explanation.

Upload the Excel file into Tableau by doing the following:

Upload the Excel file into Tableau by doing the following:

Open the Tableau Desktop application.

On the left$-$hand side, under the Connect header and the To a file sub$-$header, click on Microsoft Excel.

Choose the Excel file and click Open$.$

Since the only worksheet in the Excel File is Calloway Company it will default as a selection with no further import steps needed

Applying Tableau Analytics $14-01($Static$)$ Part $1$

Assume the companys discount rate of $20\%($as shown in cell A$9$ of the above Excel screen capture$)$ represents its opportunity cost of capital. In other words, it represents the annual return that the company could earn if it invested $$100,000$ in an alternative capital budgeting proposal, rather than committing it to this projects working capital needs.

Required:

$1$a$.$ Without considering the time value of money, how much return could Jefferson earn each of the next four years by investing $$100,000$ elsewhere in the company?

$1$b$.$ Considering the time value of money $($and using the discount factors for years $1-4$ as shown in the above Excel screen capture$),$ what is the present value of the annual opportunity costs fromrequirement$1?$