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 |