Question: (LO 9-3) What would be the Excel formula to compute the net present value for this stream of cash flows for an initial $50,000 investment

(LO 9-3) What would be the Excel formula to compute the net present value for this stream of cash flows for an initial $50,000 investment and cash inflows of $18,000 per year for Years 1–4 with a 10 percent cost of capital?

a. =NPV(0.1,18000,18000,18000,18000)-50000

b. =NPV(0.1,+50000,−18000,−18000,−18000,−18000)

c. =NPV(0.1,18000,18000,18000,18000,−50000)

d. =NPV(−50000,18000,18000,18000,18000)

Step by Step Solution

★★★★★

3.40 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Data Analytics Accounting Questions!

Given the information below, compute annualized returns: Price Initial Price Time Period 15 months 11 months Income Asset Change $ 2 $ 6 10 $29 40 B 70 30 7 years 24 months 50 20 -8 D

On 1 April 2011, a company had in issue 300,000 6% Loan notes and redeemed a third of it on 30 June 2011 paying a premium of 10%. It pays interest on Loan notes half yearly in arrears on 30 June and...

Complete tabs 10.4, 10.6, 10.11, 10.12, 10.19, and 10.22 in the attached Chapter 10 Excel spreadsheet. An EXAMPLE tab is provided in the spreadsheet for your guidance. You must use formulas in the...

What would be the Excel formula to compute the net present value for this stream of cash flows for an initial $50,000 investment and cash inflows of $18,000 per year for Years 1 through 4 with a 10%...

The Excel formula to compute the net present value of cash flows for a $ 5 5 , 0 0 0 investment ( - 5 5 , 0 0 0 at year zero ) and cash inflows of $ 2 0 , 0 0 0 per year for years 1 through 4 , using...

pleasehelp me solve this The Excel formula to compute the net present value of cash flows for a \$ \\$ 55,000 \$ investment \$ (-55,000 \$ at year zero) and cash inflows of \$ \\$ 20,000 \$ per...

The Excel formula to compute the net present value of cash flows for a $55,000 investment (55,000 at year zero) and cash inflows of $20,000 per year for years 1 through 4 , using a 4% discount rate...

I have two questions in accounting. Can someone help me out? See below Question 1: Complete Problem 14.1 on page 290 of the course text (solution is on page 523). Next, work the problem again using...

Hello, solving the Rhone Poulenc Rorer case implies usually the use of montecarlo smulation to valuate the CVR. However the professor said to use only Black and Scholes and Binomial combined. I know...

Exercise 11-7 (Algo) Net present value and unequal cash flows LO P3 Gomez is considering a $240,000 investment with the following net cash flows. Gomez requires a 12% return on its investments. (PV...

When exponential smoothing is used in fitting a curve to a time series, the approach is slightly different from its application to forecasting. Compare the appropriate formulas and point out how they...

Toyota Motor Corp. measures the sensitivity of its exports to the yen exchange rate (relative to the U.S. dollar). Explain how regression analysis could be used for such a task. Identify the expected...

How is a statute passed? Follow the path in Figure 1.6.

Assume you were given information regarding current ratios for three consecutive years. Can you determine the general condition of liquidity without calculating working capital? If the following...

What can we learn by looking at an individuals transactions through the lens of Benfords law?

As an auditor, why would we be concerned with a high volume of transactions that exceed the Benford Expected value?

How many duplicate records did you locate?

answer typed, not in spreadsheets What is the covariance between Stock 1 and Stock 2's returns? Expected Return Probability Stock 1 Stock 2 Good Economy 0.2 0.19 0.28 Okay Economy 0.5 0.11 0.05 Bad...

Question Help O Chicago Hospital, a nonprofit organization, estimates that it can save $25,000 a year in cash operating costs for the next 9 years if it buys a special-purpose eye-testing machine at...

Question 7) The following information is available for Keegan Technologies at December 31, 2023. Instructions: Prepare a classified statement of financial position (in color); assume that 40 percent...