The XNPV function can calculate NPV for any (possibly irregular) series of cash flows. Look this function

Question:

The XNPV function can calculate NPV for any (possibly irregular) series of cash flows. Look this function up in Excel’s online help. Then use it to develop a spreadsheet model that finds the NPV of the following series: a payment of $25,000 today (assumed to be June 15, 2014), and cash inflows of $10,000 on March 1, 2015; $15,000 on September 15, 2015; $8000 on January 20, 2016; $20,000 on April 1, 2016; and $10,000 on May 15, 2016. Discount these back to “today” using a discount rate of 12%.

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Practical Management Science

ISBN: 978-1305250901

5th edition

Authors: Wayne L. Winston, Christian Albright

Question Posted: