Introduction: The assignment requires the application of the net present value (

Introduction: The assignment requires the application of the net present value (NPV) model to assess investment options given the Cost of Capital as the discount rates. You will explain the role of a discount rate in evaluating the NPV model and compare investment options as cost of capital increases or decreases. The use of a financial calculator and/or Excel will be required in this assignment.
Scenario: A new product manager presents to you, the chief financial officer, a proposal to expand operations that includes purchasing a new machine. The company uses a 12% discount rate for cash flows and project-related budgeting. The projected project cash flows are presented below.
Project Outflows to Buy Machine
Day 1 Cash Out $100,000
End Year 1 Cash Inflow $20,000
End Year 2 Cash Inflow $20,000
End Year 3 Cash Inflow $30,000
End Year 4 Cash Inflow $30,000
Discount rate 12.00%
Checklist:
1.12% Cost of Capital
Assess the investment option by applying the NPV model using a 12% cost of capital discount rate. Include values in your assessment and conclude whether it is a viable investment.
7% Cost of CapitalAssess the investment option using a 7% cost of capital discount rate. Include values in your assessment and conclude whether it is a viable investment.
Discuss each requirement in separate paragraphs using subtitles to identify the topic.
DIRECTIONS FOR SUBMITTING YOUR ASSIGNMENT
Submit a 2- to 3-page paper with an additional title page in APA format.