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Can you please include the formula as well? A1 . fo Function: NPV; Formula: Add, Subtract; Cell Referencing G M Student Work Area Required: Provide
Can you please include the formula as well?
A1 . fo Function: NPV; Formula: Add, Subtract; Cell Referencing G M Student Work Area Required: Provide input into cells shaded in yellow in this template. Use the NPV function with cell referencing to the Problem area in the input cell Use a math formula in the field in which the cash flow for the salvage value is expected to occur, and separately, to account for the initial cash flow in the formula after the function has been inputted. A B D 1 Function: NPV; Formula: Add, Subtract; Cell Referencing 2 3 Using Excel to Determine the Net Present Value 4 PROBLEM 5 Thunder Corporation, an amusement park, is considering a 6 capital investment in a new exhibit. Amusement parks need to 7 rotate exhibits to keep people interested. Additional information 8 concerning the potential investment follows 9 10 Original cost of investment $ 136,000 11 Estimated sales value at end of 5 years 60,000 12 Expected increase in annual cash flows 25,000 13 Estimated useful life in years 5 years 14 Borrowing rate 8.0% 15 Cost of capital 10.0% 16 17 18 19 20 21 Calculate the net present value of this project to the company using Excel's NPV function Net present value 22 23 24 25 EnterStep by Step Solution
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