Question: please complete with excel. thank you 8.18 Compute the NPV of an investment with CF, = -$50 000 and CF, = +$12000 ( = 1,

please complete with excel. thank you

8.18 Compute the NPV of an investment with CF, = -$50 000 and CF, = +$12000 ( = 1, ...,6) if the annual interest rate, compounded annually, is (a) 8%, (b) 10%, (c) 12%, (d) 15%. (e) Interpret the results. Ans.(a) $5473.37; (b) $2262.53; (c) -$663.98; (d) - $4586.74. (e) The investment is not economically acceptable when the interest rate is 12% or greater, in which case the present worth of the cash flows is less than the (present werth of the investment. Approximate the ROR for Problem 8.18 by interpolation between the results of Problem 8.18(b) and (c). Ans. i* 10.454%

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