Question

? X Calculating NPV and IRR - Excel FORMULAS DATA REVIEW - Sign In FILE HOME INSERT PAGE LAYOUT VIEW Calibri Paste B IU A Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells - Clipboard Font A1 д в E F G H I A project that provides annual cash flows of $15,400 for nine years costs $67,000 today. What is the NPV if the required return is 8 percent? What if it's 20 percent? At what discount rate would you be indifferent between accepting the project and rejecting it? $ Annual cash flows # of years Costs Required Return Required Return A 15,400 9 67,000 8% 20% Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel function to answer this question. NPV at 8 percent NPV at 20 percent IRR ... Sheet1 ... + @ D - + 100% READY Attempt(s)

Answer 1

Using excel formula to calculate

	C	D
6	Annual Cash flows	15400
7	Years	9
8	Costs	67000
9	Required Return	8%
10	Required Return	20%
			Excel formula
	NPV at 8%	29202.07	PV(D9,D7,-D6)-D8
	NPV at 20%	-4923.12	PV(D10,D7,-D6)-D8
	IRR	17.67%	RATE(D7,-D6,D8)