Question
Consider the following projected cash flows in the indicated cells in Excel for years zero through 2, respectively:A1= -$1000, A2= $600, A3= $500. In addition,
Consider the following projected cash flows in the indicated cells in Excel for years zero through 2, respectively:A1= -$1000, A2= $600, A3= $500. In addition, the firm's cost of capital of 9% is in cell A4. Which of the following would be the correct formula to compute the NPV of this project?
A) NPV(A4, A1:A3)B) NPV(A4, A2:A3) + A1
C) NPV(A4, A2:A3) - A1D) Sum(A1:A3/(1+A4)^3
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
