Use NPV to evaluate the potential investments.
Data: Lab 9-5 Data.xlsx
Specify t
Use NPV to evaluate the potential investments.
Data: Lab 9-5 Data.xlsx
Specify the Question: How can we use NPV to evaluate potential investments?
Obtain the Data: Open Excel file Lab 9.5 Data.xlsx.
Suppose there are four potential stock investments, with each one costing $50,000 upfront. The investor has a five-year horizon, meaning he plans to sell the investment after five years. The first, third, and fourth companies pay dividends, but the second company currently does not.
The analysis suggests the projected string of cash flows shown in Lab Exhibit 9.5.1.
Submission: Upload the Word or PDF document containing your Lab screenshots using the button below.
Note: Please submit your file attachment response in one of the approved file formats; Word file (.doc or .docx), Excel file (.xls or .xlsx), or PDF. To submit photo or image files please paste them into Word or PDF. Consult with your instructor as needed on their preferred file attachment format.
Take a screenshot of the NPV analysis, paste it into a Word document named “Lab 9.5 Excel Submission.docx”, and label the screenshot Submission 1.