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Consider the following projected cash flows in the indicated cells in Excel: A1 = -$500; A2 = $300; A3 = $215. In addition, the firm's cost of capital of 10% is in cell A4. Which of the following would be the correct formula to compute the NPV of this project?

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Part 1

A.

NPV(A4, A1:A3)

B.

Sum(A1:A3)/(1 + A4)^3

C.

NPV(A4, A2:A3) + A1

D.

NPV(A4, A2:A3) - A1