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Consider the following projected cash flows in the indicated cells in Excel for years zero through 3, respectively: A1 = -$2,000; A2 = $900; A3
Consider the following projected cash flows in the indicated cells in Excel for years zero through 3, respectively: A1 = -$2,000; A2 = $900; A3 = $700; A4 = $500. In addition, the firm's cost of capital of 7% is in cell A5. Which of the following would be the correct formula to compute the NPV of this project?
A. NPV(A5,A1:A4) B. NPV(A5,A2:A4) +A1 C. NPV(A5, A2:A4)-A1 D. Sum(A1:A4/(1+A5)^4
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