Question: Using Excel to Determine the Net Present Value PROBLEM Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. Amusement
Using Excel to Determine the Net Present Value PROBLEM Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. Amusement parks need to rotate exhibits to keep people interested. Additional information concerning the potential investment follows. Original cost of investment Estimated sales value at end of 5 years Expected increase in annual cash flow: Estimated useful life in years Borrowing rate Cost of capital $136,000 60,000 25,000 5 years 8.0% 10.0% Student Work Area Required: Provide input into cells shaded in yellow in this template. Use the NPV function with cell referencing to the Problem area in the input cell. Use a math formula in the field in which the cash flow for the salvage value is expected to occur, and separately, to account for the initial cash flow in the formula after the function has been inputted. Calculate the net present value of this project to the company using Excel's NPV function. Net present value
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