NPV Analysis; Sensitivity Analysis; Data Tables in Excel This assignment is designed tointroduce you to the preparation of both a one-variable and a two-variable Data Table in Excel. Suchtables are useful for conducting and reporting the results of a series of what-if analyses. Assume thata hypothetical 5-year investment would require a net investment outlay of $350,000 and would haveannual (after-tax) cash inflows of $100,000. Assume, too, that the company considering this investment uses a 10% discount rate (weighted-average cost of capital) for present-value calculations.Required1. Consult the specified online help file (Microsoft website) regarding the preparation of Data Tables. (Seefootnote 27.)2. Prepare a one-variable Data Table where you depict the NPV of the proposed investment at each of thefollowing discount rates: 8% to 12%, in increments of 0.5%. Round your answers to nearest whole dollar. 3. Prepare a two-variable Data Table where, in addition to the 10 discount rates assumed in requirement 2, youwant to consider three possible levels of after-tax cash inflows per year: $90,000, $100,000, and $110,000.(Thus, your table will include 10 × 3 = 30 cells.) Round your answers to nearest whole number.
introduce you to the preparation of both a one-variable and a two-variable Data Table in Excel. Such
tables are useful for conducting and reporting the results of a series of what-if analyses. Assume that
a hypothetical 5-year investment would require a net investment outlay of $350,000 and would have
annual (after-tax)
Required
1. Consult the specified online help file (Microsoft website) regarding the preparation of Data Tables. (See
footnote 27.)
2. Prepare a one-variable Data Table where you depict the NPV of the proposed investment at each of the
following discount rates: 8% to 12%, in increments of 0.5%. Round your answers to nearest whole dollar.
3. Prepare a two-variable Data Table where, in addition to the 10 discount rates assumed in requirement 2, you
want to consider three possible levels of after-tax cash inflows per year: $90,000, $100,000, and $110,000.
(Thus, your table will include 10 × 3 = 30 cells.) Round your answers to nearest whole number.
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