In: Finance
Net Present value has to be calculated using NPV function in EXCEL
=NPV(rate,Year1 to Year5 cashflows)-Year0 cashflow
=NPV(13%,Year1 to Year5 cashflows)-21=-$2.24
| cost of capital | 13% | 
| Year0 | -21 | 
| Year1 | 4 | 
| Year2 | 5 | 
| Year3 | 6 | 
| Year4 | 6.12 | 
| Year5 | 6.24 | 
| NPV | -2.24 |