Colorado State University Net Present Value Project Management Analysis

Option #1: NPV

Review the following data concerning the amount of capital investment and return of investment for two alternative projects.

Project/

Year

0

1

2

3

4

A

-$124,000

$32,000

$44,000

$50,000

$50,000

B

-$211,000

$72,000

$75,000

$77,000

$80,000

Use Excel to calculate the NPV values for the two projects with the discount rates of 5%, 15% and 20% using proper formula in Excel.

Provide a two-page narrative to:

1. Describe the steps you took to calculate the NPV values
2. Explain your findings
3. Specify which project you would select for each of the discount rates of 5%, 15%, and 20%.

Include an excerpt (showing your calculations and outcomes) from your Excel file in your narrative and specify the formula you used