The real value of Lindsay's account after 30 years of investing will depend on inflation over that period. In the Excel function 5NPV(rate, value1, value2, …), rate is called the discount rate, and value1, value2 etc. are incomes (positive) or expenditures (negative) over equal periods of time. Update your model previously developed in Problem 7 using the NPV function to get the net present value of Lindsay's retirement fund. Construct a data table that shows the net present value of Lindsay's retirement fund for various levels of return and inflation (discount rate). Use a data table to vary the return from
0 to 12 percent in increments of 1 percent and the discount rate from 0 to 4 percent in increments of 1 percent to show the impact on the net present value.