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Accounting 2603 Excel Assignment #4 Complete the following NPV calculation with the instructions and data as provided. Example 2: NPV of Allegra's DVR Project-Unequal Cash

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Accounting 2603 Excel Assignment #4 Complete the following NPV calculation with the instructions and data as provided. Example 2: NPV of Allegra's DVR Project-Unequal Cash Flows Recall from page 721 of the text that the DVR project required an investment of $1 million and was expected to generate the unequal periodic cash inflows shown in Exhibit 12-11 . The company's discount rate was 14%. 1. In an Excel spreadsheet, type in the future cash flows expected from the invest- ment in the order in which they are expected to be received. Your spreadsheet should show five consecutive cells with the following values in them: 500000, 350000, 300000, 250000, 40000. 2. Click on Formulas. 3. Click on Financial. 4. Chopse NPV from the dropdown list. The following will appear as a dialog box. Fil in the variables as follows Rate = .14 Value 1 = (Highlight array of cells containing the cash flow data from Step 1) The present value of the cash flows appears at the bottom of the dialog box as = 1,079,196.40 (rounded). Finally, subtract the initial cost of the investment ($1 million) to obtain the NPV $79,196.40 (rounded) 5, 6

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