Question: Suppose an initial investment of $100 will return $50/year for three years (assume the $50 is received each year at the end of the year). Is this a profitable investment if the discount rate is 20%? Harder question: what discount rate would make the net present value of this investment equal to zero (this is the “critical discount rate”). Hint: you might think about setting this up in Excel and trying to determine the zero NPV discount rate. (3 points)