Question

A project has the following cash flows:

Year	Cash Flow
0	–$	16,300
1		7,000
2		8,300
3		6,800

   

What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

  

NPV

$

  

What is the NPV at a discount rate of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

NPV

$

  

What is the NPV at a discount rate of 19 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

NPV

$

  

What is the NPV at a discount rate of 28 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

NPV

$

Answer 1

NPV =PV of inflows -Initial Outflow

The NPV can be computed using the excel formula=NPV()

NPV@0%

The discount rate =0%

The formula used =NPV(0%,B3:B5)+B2 we get NPV as $5,800

NPV@12%

The formula used =NPV(12%,B3:B5)+B2 we get NPV as $1,406.81

NPV@19%

The formula used =NPV(19%,B3:B5)+B2 we get NPV as -$521.25

NPV@28%

The formula used =NPV(28%,B3:B5)+B2 we get NPV as -$2,522.84

BS Book1 - Excel (Product Activation Failed) X File Home Insert Page Layout Formulas Data Review View Developer Tell me what you want to do... ie Calibri 11 - A A pe Wrap Text Accounting AM * Cut Copy Paste Format Painter Clipboard L Insert Delete Format Sign in & Share AutoSum - Fill - Sort & Find & Clear - Filter - Select- Editing BI U και A € Merge & Center $ - % 6.000 .00 0 Conditional Format as Cell Formatting Table Styles Styles Font Alignment Number Cells B9 : X =NPV(28%,B3:B5)+B2 A B C D E F G H J K L M N o Q P R -16300 7000 8300 1 Years Amount 2 Year o 3 Year 1 4 Year 2 5 Year 3 6 NPV@0% $ 7 NPV@12% $ 8 NPV@19% $ 9 NPV@289 $ 10 6800 5,800.00 1,406.81 (521.25) (2,522.84) 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Sheet1 Sheet2 + Ready 1 + 100%