The XNPV function can calculate NPV for any (possibly irregular) series of cash flows. Look this function
Question:
The XNPV function can calculate NPV for any
(possibly irregular) series of cash flows. Look this function up in Excel’s online help. Then use it to set up a spreadsheet model that finds the NPV of the following series: a payment of $25,000 today
(assumed to be June 15, 2006), and cash inflows of
$10,000 on March 1, 2007; $15,000 on September 15, 2007; $8000 on January 20, 2008; $20,000 on April 1, 2008; and $10,000 on May 15, 2008. Discount these back to “today” using a discount rate of 12%. (Note:
To use the XNPV function, Excel’s Analysis ToolPak must be added in. To ensure this, select the Tools/
Add-Ins menu item, and make sure the Analysis ToolPak is checked.)
Step by Step Answer:
Practical Management Science, Revised
ISBN: 9781118373439
3rd Edition
Authors: Wayne L Winston, S. Christian Albright