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answer this question and SHOW EXCEL FORMULA please Problem 8-7 Marian Plunket owns her own business and is considering an investment. If she undertakes the
answer this question and SHOW EXCEL FORMULA please
Problem 8-7 Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,000 at the end of each of the next three years. The opportunity requires an initial investment of $1,000 plus an additional investment at the end of the second year of $5,000. What is the NPV of this opportunity if the cost of capital is 2% per year? Should Marian take it? Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. Investment year 0 Investment year 2 Cash flow years 1-3 Number of periods (years) Cost of capital 1,000 5,000 4,000 2% PV of cash inflows PV cash outflows NPV of investment Take opportunity (Yes/No)Step by Step Solution
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