Description
Create a time value of money Excel spreadsheet for the following two investments:A. Initial investment ($100,000); Forecasts: Year 1 payback ($25,000); Year 2 payback ($25,000); Year 3 payback ($25,000)B. Initial investment ($100,000); Forecasts: Year 1 payback ($20,000); Year 2 payback ($25,000); Year 3 payback ($40,000)Use a re-investment rate of 10%. Calculate Net Present Value (=NPV) for each investment and specify which investment is the most profitable.