Hi, Im supposed to make a net present value analysis for a diesel truck both by hand and in excel. I can make up all the specifics myself, so I have chosen a discount rate of 10%, the truck is used for 10 years. The diesel truck is bought new for 100 000$ and the salvage value is 20 000$. The annual fuel cost is 10 000$.

My analysis so far:

Diesel truck:

NPV = (-$100,000) + (-$10,000 / 1.1) + ... + (-$10,000 / 1.1^9) + ($20,000 / 1.1^10)

NPV = -$72,415.47

Im supposed to do the NPV analysis in excel too, but when I plot in my equation the numbers are not the same as when I do it by hand.

This is what I type in Excel for the diesel truck:

Discount rate: 10%

Investment year 0: 100 000

Fuel cost year 1-9: 10 000 per year

Salvage value: 200 000

Cash flow

0: -100 00

1-9: 10 000

10: 20 000

The formula for NPV: NPV=(rate,value1,[value2],...)+investment

NPV= (10%,10 000,10 000, 10 000,,20 000)+ (-100 000)