In: Finance
Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Project U | ||||||
Time: | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow: | –$1,000 | $350 | $1,480 | –$520 | $300 | –$100 |
show how to do this in excel and the excel formulas
You have to show what the excel formulas are pls
Ans $ 293.45
Year | Project Cash Flows (i) | DF@ 10% | DF@ 10% (ii) | PV of Project U ( (i) * (ii) ) |
0 | -1000 | 1 | 1 | (1,000.00) |
1 | 350 | 1/((1+10%)^1) | 0.909 | 318.18 |
2 | 1480 | 1/((1+10%)^2) | 0.826 | 1,223.14 |
3 | -520 | 1/((1+10%)^3) | 0.751 | (390.68) |
4 | 300 | 1/((1+10%)^4) | 0.683 | 204.90 |
5 | -100 | 1/((1+10%)^5) | 0.621 | (62.09) |
NPV | 293.45 |