Question
Correct calculations NPV = -1,000,000/(1 + 10.38%) 1 - 3,000,000/(1 + 10.38%) 2 - (750,000/10.38%) / (1 + 10.38%) 3 = - $905,961.22 - $2,462,297.22
Correct calculations
NPV = -1,000,000/(1 + 10.38%)1- 3,000,000/(1 + 10.38%)2- (750,000/10.38%) / (1 + 10.38%)3
= - $905,961.22 - $2,462,297.22 - $7,225,433.53/(1 + 10.38%)3
= - $905,961.22 - $2,462,297.22 - $5,372,701.85
NPV = $8,740,960.30
I compared my Excel function to the above results... I'm getting NPV= -$8,738,535.38 and not the NPV =$8,740,960.30 as noted on the equation above. Can you share the Excel function inputs that need be enter to calculate NPV for the above equation? I would like to compare it to my entries for a better understanding? Thank you!
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