Question: Please show how to solve the following NPV problems using Excel functions Project Economic Justification Example: NPV Discount rate = 3% (values are in $1,000)

Please show how to solve the following NPV problems using Excel functions

Please show how to solve the following NPV problems using Excel functions

Project Economic Justification Example: NPV Discount rate = 3% (values are in $1,000) Year 6 10,000.00 15,000.00 40,000.00 45,000.00 45,000.00 45,000.00 8,500.00 8,500.00 8,500.00 8,500.00 75,000.00 40,000.00 Cash Flow Cost Contingency PV PV (w contingency) 20,000.00 8,500.00 30,000.00 (a) (b) NPV = NPV (w contingency) = Example: NPV with option to abandon (values are in $1,000) Year Discount rate = 3% 0 1 2 10,000.00 15,000.00 3 4 5 6 20,000.00 40,000.00 45,000.00 45,000.00 8,500.00 8,500.00 8,500.00 8,500.00 30,000.00 5,000.00 8,500.00 75,000.00 40,000.00 Cash Flow Cost Contingency PV PV (w contingency) PV (abandon @ yr. 5) Recovery (PV) (a) (b) (c) NPV = NPV (w contingency) = Abandon after yr. 3 with recoup $105 million of three years' investment Recovery $ 105,000.00 NPV = NPV (w contingency) = Project Economic Justification Example: NPV Discount rate = 3% (values are in $1,000) Year 6 10,000.00 15,000.00 40,000.00 45,000.00 45,000.00 45,000.00 8,500.00 8,500.00 8,500.00 8,500.00 75,000.00 40,000.00 Cash Flow Cost Contingency PV PV (w contingency) 20,000.00 8,500.00 30,000.00 (a) (b) NPV = NPV (w contingency) = Example: NPV with option to abandon (values are in $1,000) Year Discount rate = 3% 0 1 2 10,000.00 15,000.00 3 4 5 6 20,000.00 40,000.00 45,000.00 45,000.00 8,500.00 8,500.00 8,500.00 8,500.00 30,000.00 5,000.00 8,500.00 75,000.00 40,000.00 Cash Flow Cost Contingency PV PV (w contingency) PV (abandon @ yr. 5) Recovery (PV) (a) (b) (c) NPV = NPV (w contingency) = Abandon after yr. 3 with recoup $105 million of three years' investment Recovery $ 105,000.00 NPV = NPV (w contingency) =

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