Question: The NPV function automatically discounts each of the cash flows and sums the discounted values. Verify that it does this correctly for Acrons model by

The NPV function automatically discounts each of the cash flows and sums the discounted values. Verify that it does this correctly for Acron’s model by calculating the NPV the long way. That is, discount each cash flow and then sum these discounted values. Use Excel formulas to do this, but don’t use the NPV function. (Remember that the discounted value of $1 received t years from now is 1/(1 + r)^t dollars today.)

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