Question

In: Finance

Net Present Value of Payouts The NPV of a series of values is calculated using a...

Net Present Value of Payouts The NPV of a series of values is calculated using a discount rate applied to those values. Apply the NPV function to the series of expected benefit payouts using .075 as the discount rate. You can hard-code the discount rate. How would you calculate this in Excel? Please show calculation and logic used in excel, so I understand. Below are the values:

Year Expected Benefit Payouts
2016 NA
2017 $19,661,882,100.00
2018 $19,909,120,629.23
2019 $20,162,051,346.58
2020 $20,420,680,083.92
2021 $20,685,015,994.25
2022 $20,955,071,470.68
2023 $21,230,862,069.61
2024 $21,512,406,437.74
2025 $21,799,726,242.91
2026 $22,092,846,108.56
2027 $22,391,793,551.78
2028 $22,696,598,924.58
2029 $23,007,295,358.62
2030 $23,323,918,712.87
2031 $23,646,507,524.45
2032 $23,975,102,962.33
2033 $24,309,748,783.82
2034 $24,650,491,293.79
2035 $24,997,379,306.50
2036 $25,350,464,110.00
2037 $25,709,799,432.87
2038 $26,075,441,413.41
2039 $26,447,448,571.04
2040 $26,825,881,779.94
2041 $27,210,804,244.76
2042 $27,602,281,478.45
2043 $28,000,381,281.99
2044 $28,405,173,726.15
2045 $28,816,731,135.01
2046 $29,235,128,071.33

Solutions

Expert Solution

In the above solution, PV of cash flows at both 2015 and 2016 are considered.

Note: Please let me know if any doubt on the formulae given below.

Formulae

jeff jeffy answered 1 year ago
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