Question: Function: NPV; Formula: Add, Subtract; Cell Referencing Some cells are merged. Using Excel to Determine the Net Present Value Student Work Area PROBLEM Required:

Function: NPV; Formula: Add, Subtract; Cell Referencing " Some cells are merged. Using Excel to Determine the Net Present Value Student Work Area PROBLEM Required: Provide input into cells shaded in yellow in this template. Use the NPV function with mathematical formulas and cell referencing to the Problem area in the input cells. Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. Amusement parks need to rotate exhibits to keep people interested. Additional information concerning the potential investment follows. Calculate the net present value of this project to the company using Excel's NPV function. Original cost of investment $136,000 Estimated sales value at end of 5 years 60,000 Expected increase in annual cash flows 25,000 Net present value Estimated useful life in years 5 years Borrowing rate 8.0% Cost of capital 10.0%

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