You need to examine a company and determine how cash flow addresses managerial finance decisions. A company must invest the cash out flows on a project (seen in the table below) and will receive the cash inflow from this project. What would the company's discount rate need to be for this project to be a good decision? Use Excel formulas and Goal Seek to solve for the interest rate as opposed to trial and error

After finishing your calculation, consider what this information might tell you. How could a company use this information to make an investment decision?

Year	1	2	3	4	5	6+
Cash out flow	500,000	25,000	25,000	25,000	25,000	-
Cash Inflow	-	-	-	-	850,000	-
Interest rate

Answer rating: 100% (QA)

To solve for the interest rate using Excel formulas and Goal Seek you can follow these steps 1 Set u... View the full answer