Question: Suppose you are considering a project which requires an initial investment of $12,000, followed by cash inflows for three years, shown below: Home Insert Page

 Suppose you are considering a project which requires an initial investment

Suppose you are considering a project which requires an initial investment of $12,000, followed by cash inflows for three years, shown below: Home Insert Page Layout Formulas Cabi Book - Microsoft Excel Data Review View Acrobat General Conditional Formatting Insert Format as Table Delete Cel Styles B) Format Number Styles Cell Paste Sort & Find & Filter Seled- Editing Clipboard Font Alignment 06 D E F 0 A 1 Year : 2 CF's: 3 1 10,000 2 3 12,000 -12,000 11,000 3 Sheet1 Sheet2 Sheet 200N Ready When calculating the NPV of the project in Excel, which of the following is the correct formula? Assume that the cost of capital is 10%. - NPV(.10, b2:e2) O - NPV(b2:e2, 10%) one cannot calculate the NPV in Excel

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