Question
Find the NPV for Project B. The discount rate is 10% (0.10), the expected cash flow for year one is $50,000, the expected cash
Find the NPV for Project B. The discount rate is 10% (0.10), the expected cash flow for year one is $50,000, the expected cash flow for year two is $25,000, and the cost of project is $40,000. First, find the present value using the financial function =NPV(discount rate, cash flow for year one, cash flow for year two) in cell B5. Then, find the NPV using the Excel formula for subtraction: present value-cost of project in cell B7. Use the NPV function to calculate the present value: NPV(discount rate, cash flow for year one, cash flow for year two)
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