Question
Finding the NPV Using Excel A proposed project has the following incremental cash flows for years zero through year 3, respectively: -$200, $75, $135, $75.
Finding the NPV Using Excel
A proposed project has the following incremental cash flows for years zero through year 3, respectively: -$200, $75, $135, $75. If the firms cost of capital is 10%, illustrate using Excel how you would compute the NPV for this project using the standard formula and then show the result using Excels NPV function without any modification. Compare the computed NPV from using the two methods and explain how to make any adjustment to Excels NPV function that would then yield the same answer as that derived from the standard formula.
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