Question: please answer using excel and explain 16) You are offered an investment that will pay the following cash flows at the end of each of
16) You are offered an investment that will pay the following cash flows at the end of each of the next five years at a cost of $800. What is the Net Present Value (NPV) if the required rate of return is 12% per year? Remember that Excel's NPV function doesn't really calculate the net present value. Instead, it simply calculates the present value of uneven cash flows. Therefore, you need to subtract (i.e., add a negative cash flow) after calculating Excel's NPV. The $800.00 initial outlay is entered as a negative value (i.e., cash outflow) in cell B4
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