Question: Problem 1: Suppose a project has the following cash flow stream during the first five years: Year 1 2. 3 4 5 CF -$3500 $1500
Problem 1: Suppose a project has the following cash flow stream during the first five years: Year 1 2. 3 4 5 CF -$3500 $1500 $3000 $2500 -$1000 Then the project repeats this cash flow cycle every five years into perpetuity (e.g., years 6- 10 have the same cash flow profile, and so on.) Build an Excel model and calculate the net present value of the project (assume the discount rate is 9%). Assume all cash flows occur at the end of each year
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
