Question 1 (3) A Which cash flow below generates the largest NPV (1) B What is the value for the largest NPV (2) C Which cash flow below generates the least NPV (2) D What are the three primary differences between the cash flow cited in A vs the cash flow cited in C I e explain what forces were at play that caused one to be the largest and the other to be the least (2) E If you were the business owner, which cash flow of the two would you prefer MARR Initial Investment 1 2 3 4 5 6 7 NPV CF1 17 $400,000 00 $147,216 40 $218,129 49 $210,904 66 $292,567 57 $394,849 36 $394,849 36 $394,849 36 NPV1 CF2 20 $500,000 00 $176,659 68 $261,755 39 $253,085 59 $351,081 08 $473,819 23 $473,819 23 $473,819 23 NPV2 CF3 15 $1,000,000 00 $141,327 74 $209,404 31 $202,468 47 $280,864 87 $379,055 39 $379,055 39 $379,055 39 NPV3 CF4 10 $1,000 00 $70,663 87 $104,702 15 $101,234 23 $140,432 43 $189,527 69 $189,527 69 $189,527 69 NPV4 CF5 22 $10,000 00 $141,327 74 $209,404 31 $202,468 47 $280,864 87 $379,055 39 $379,055 39 $379,055 39 NPV5 CF6 15 $300,000 00 $176,659 68 $261,755 39 $253,085 59 $351,081 08 $473,819 23 $473,819 23 $473,819 23 NPV6 CF7 17 $250,000 00 $132,494 76 $196,316 54 $189,814 19 $263,310 81 $355,364 42 $355,364 42 $355,364 42 NPV7 CF8 21 $400,000 00 $117,920 34 $174,721 72 $168,934 63 $234,346 62 $316,274 34 $316,274 34 $316,274 34 NPV8 CF9 25 $1,000,000 00 $182,400 00 $279,055 22 $200,029 54 $374,955 46 $506,003 89 $560,030 89 $509,603 89 NPV9 CF10 5 $5,000 00 $3,018 76 $4,472 88 $4,324 73 $5,999 27 $8,096 62 $8,096 62 $8,096 62 NPV10

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Question: Question #1 (3) A. Which cash flow below generates the largest NPV? (1) B. What is the value for the largest NPV? (2) C. Which

Question #1
(3) A. Which cash flow below generates the largest NPV?
(1) B. What is the value for the largest NPV?
(2) C. Which cash flow below generates the least NPV?
(2) D. What are the three primary differences between the cash flow cited in A vs. the cash flow cited in C? I.e. explain what forces were at play that caused one to be the largest and the other to be the least?
(2) E. If you were the business owner, which cash flow of the two would you prefer?
	MARR	Initial Investment	1	2	3	4	5	6	7	NPV
CF1	17%	-$400,000.00	$147,216.40	$218,129.49	$210,904.66	$292,567.57	$394,849.36	$394,849.36	$394,849.36		NPV1
CF2	20%	-$500,000.00	$176,659.68	$261,755.39	$253,085.59	$351,081.08	$473,819.23	$473,819.23	$473,819.23		NPV2
CF3	15%	-$1,000,000.00	$141,327.74	$209,404.31	$202,468.47	$280,864.87	$379,055.39	$379,055.39	$379,055.39		NPV3
CF4	10%	-$1,000.00	$70,663.87	$104,702.15	$101,234.23	$140,432.43	$189,527.69	$189,527.69	$189,527.69		NPV4
CF5	22%	-$10,000.00	$141,327.74	$209,404.31	$202,468.47	$280,864.87	$379,055.39	$379,055.39	$379,055.39		NPV5
CF6	15%	-$300,000.00	$176,659.68	$261,755.39	$253,085.59	$351,081.08	$473,819.23	$473,819.23	$473,819.23		NPV6
CF7	17%	-$250,000.00	$132,494.76	$196,316.54	$189,814.19	$263,310.81	$355,364.42	$355,364.42	$355,364.42		NPV7
CF8	21%	-$400,000.00	$117,920.34	$174,721.72	$168,934.63	$234,346.62	$316,274.34	$316,274.34	$316,274.34		NPV8
CF9	25%	-$1,000,000.00	$182,400.00	$279,055.22	$200,029.54	$374,955.46	$506,003.89	$560,030.89	$509,603.89		NPV9
CF10	5%	-$5,000.00	$3,018.76	$4,472.88	$4,324.73	$5,999.27	$8,096.62	$8,096.62	$8,096.62		NPV10

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