Question: PLEASE ANSWER USING EXCEL FORMULAS!!!! Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,000

PLEASE ANSWER USING EXCEL FORMULAS!!!! Marian Plunket owns her own business andPLEASE ANSWER USING EXCEL FORMULAS!!!!

Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,000 at the end of each of the next three years. The opportunity requires an initial investment of $1,000 plus an additional investment at the end of the second year of $5,000. What is the NPV of this opportunity if the cost of capital is 2% per year? Should Marian take it? Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. Requirements 1 In cell D12, by using cell references, calculate the PV of the cash inflows (1 pt.). 2 In cell D13, by using cell references, calculate the PV of the cash outflows. Note: The output of the expression you typed in this cell is expected as a negative number. (1 pt.). 3 In cell D14, by using cell references, calculate the NPV of the investment opportunity (1 pt.). 4 In cell D15, type Yes or No depending on whether you would take the opportunity or not (1 pt.). Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,000 at the end of each of the next three years. The opportunity requires an initial investment of $1,000 plus an additional investment at the end of the second year of $5,000. What is the NPV of this opportunity if the cost of capital is 2% per year? Should Marian take it? Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. Requirements 1 In cell D12, by using cell references, calculate the PV of the cash inflows (1 pt.). 2 In cell D13, by using cell references, calculate the PV of the cash outflows. Note: The output of the expression you typed in this cell is expected as a negative number. (1 pt.). 3 In cell D14, by using cell references, calculate the NPV of the investment opportunity (1 pt.). 4 In cell D15, type Yes or No depending on whether you would take the opportunity or not (1 pt.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!