Question: Please use Excel. Suppose you are trying to open a restaurant that requires the initial investment of $120,000. You expect to generate net cash flows

 Please use Excel. Suppose you are trying to open a restaurant

that requires the initial investment of $120,000. You expect to generate net

cash flows of 20,000; 40,000; 50,000; 60,000; and 70,000 in the next

Please use Excel.

Suppose you are trying to open a restaurant that requires the initial investment of $120,000. You expect to generate net cash flows of 20,000; 40,000; 50,000; 60,000; and 70,000 in the next five years, respectively. The market rate of return on similar business is 20%. You reuire to recover the initial cash investment of the project in 3 years using actual cash flows or 4 years using discounted cash flows. DPP Decision? 4. IRR IRP 5. Profitability Index Pl Decision? 6. NPV Profile GRAPH the NPV Profile \begin{tabular}{|c|c|} \hline Return & NPV \\ \hline 0% & \\ \hline 5% & \\ \hline 10% & \\ \hline 15% & \\ \hline 20% & \\ \hline 25% & \\ \hline 30% & \\ \hline 35% & \\ \hline 40% & \\ \hline & \\ \hline \end{tabular} Summary \begin{tabular}{|l|r|c|} \hline NPV & 0 & 0 \\ \hline Payback Period & .00 years & .00 years \\ \hline Discounted Payback Period & .00 years & .00 years \\ \hline IPR & 0.00% & 0.00% \\ \hline Profitability Index & 0.00 & 0.00 \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!