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AutoSave Off H. M4 Set1 - PV IRR Payback Period - Read-Only - Excel Search Easton E File Home Insert Page Layout Formulas Data Review

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AutoSave Off H. M4 Set1 - PV IRR Payback Period - Read-Only - Excel Search Easton E File Home Insert Page Layout Formulas Data Review View Help Power Pivot Share Comments Insert Times New Roman 10 ~A == General AY O s a Wrap Text E E Merge & Center LIV Paste BIU Av 2X Delete Format $ %) Ideas y Sensitivity .00 Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter Select Editing Clipboard Font Alignment Number Cells Ideas Sensitivity A21 X M N O Q R 14 0 4 A B C D E F . | J K L 1 today is expected to bring the future cash flows for years 1 to 4 shown below. An investment of $500 After the 4th year cash flows are expected to grow at the given long term 2 growth rate forever. 3 Find the NPV, IRR, & payback period of the investment. 4 Inputs 5 Discount rate 11.0% 6 Long term growth rate 3.0% 7 8 Period 1 2 3 9 Cash flows ($500.00) $125.00 $80.00 $200.00 $210.00 10 11 Net Present Value 12 Use the NPV function Answer #4 13 14 Internal Rate of Return 15 Use the IRR function Answer #5 16 17 18 19 20 21 22 23 Problem 1 Problem 2 Problem 3 + Ready @ + 100% Type here to search j N a W 11:38 AM 11/4/2020 2

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