# Excel | Investment appraisal exercise | Investment appraisal XL 07

This exercise is provided to allow potential course delegates to choose the correct Wise Owl Microsoft training course, and may not be reproduced in whole or in part in any format without the prior written consent of Wise Owl.

 Software ==> Excel  (151 exercises) Version ==> Excel 2010 and later Topic ==> Investment appraisal  (1 exercise) Level ==> Average difficulty Subject ==> Excel training
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You meet another friend in a pub, who wants to open a roller disco (why not?).  This will require an investment of £40,000 from you at the end of year 1, after which time you will receive annual dividends of £10,000 at the end of each of the 7 subsequent years.  All of this is shown in the file above, which you should open.

The blue cells are currently blank:

You need to create formulae to calculate the NPV and IRR

Create formulae to show that:

• The Net Present Value for the investment for the discount rate on the inputs sheet is £11,170.09.
• The Internal Rate of Return for the investment is 16.33%.

Would you invest the money on this basis?

You can unzip this file to see the answers to this exercise, although please remember this is for your personal use only.