Question: The XNPV function can calculate NPV for any (possibly irregular) series of cash flows. Look this function up in Excels online help. Then use it
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 set up a spreadsheet model that finds the NPV of the following series: a payment of $25,000 today
(assumed to be June 15, 2006), and cash inflows of
$10,000 on March 1, 2007; $15,000 on September 15, 2007; $8000 on January 20, 2008; $20,000 on April 1, 2008; and $10,000 on May 15, 2008. Discount these back to “today” using a discount rate of 12%. (Note:
To use the XNPV function, Excel’s Analysis ToolPak must be added in. To ensure this, select the Tools/
Add-Ins menu item, and make sure the Analysis ToolPak is checked.)
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