Assume an investment costing $24,869 will earn $10,000 a year for ten years. If the discount...

Assume an investment costing $24,869 will earn $10,000 a year for ten years. If the discount rate is 15%, what is the NPV of this project?

Show this in excel with the formulas for excel shown. the formulas must be shown

Expert Solution

Ans $ 25318.69

Year	Project Cash Flows (i)	DF@ 15%	DF@ 15% (ii)	PV of Project A ( (i) * (ii) )
0	-24869	1	1	(24,869.00)
1	10000	1/((1+15%)^1)	0.870	8,695.65
2	10000	1/((1+15%)^2)	0.756	7,561.44
3	10000	1/((1+15%)^3)	0.658	6,575.16
4	10000	1/((1+15%)^4)	0.572	5,717.53
5	10000	1/((1+15%)^5)	0.497	4,971.77
6	10000	1/((1+15%)^6)	0.432	4,323.28
7	10000	1/((1+15%)^7)	0.376	3,759.37
8	10000	1/((1+15%)^8)	0.327	3,269.02
9	10000	1/((1+15%)^9)	0.284	2,842.62
10	10000	1/((1+15%)^10)	0.247	2,471.85
		NPV		25,318.69

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