Question: Using Excel functions please solve the following table ANALYZING CASH FLOWS Calculate NPV and IRR for a series of cash flows Blue cells are input
Using Excel functions please solve the following table
| ANALYZING CASH FLOWS | ||||||||
| Calculate NPV and IRR for a series of cash flows | ||||||||
| Blue cells are input cells and green cells are where your calculations should go. Don't hardcode any numbers, always refer back to input cells! | ||||||||
| Today | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Project costs | ($100,000) | |||||||
| Project benefits | $25,000 | $30,000 | $42,000 | $16,000 | $10,000 | |||
| Discount rate | 8% | |||||||
| Time | 0 | 1 | 2 | 3 | 4 | 5 | ||
| Total cash flow | calculate the total cash flow per period (benefits - costs) | |||||||
| PV of cash flow | calculate the present value of each cash flow above | |||||||
| NPV (sum of cash flows) | calculate the sum of all the present value to arrive at NPV | |||||||
| NPV | calculate NPV with the appropriate Excel function | |||||||
| IRR | calculate IRR with the appropriate Excel function | |||||||
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