Question
For what value of W will the NPV of the series of cash flows be zero at 12% per period interest rate? Use excel and
For what value of W will the NPV of the series of cash flows be zero at 12% per period interest rate? Use excel and the Goal seek function solving for W. and explain the work.
Year | Cash Flow | |||
0 | +$25000 | |||
1 | -4W | |||
2 | 18W | |||
3 | -16W | |||
4 | 48W | |||
5 | -64W | |||
6 | 42W | |||
7 | -256W | |||
8 | 52W | |||
9 | -64W | |||
10 | 42W | |||
11 | -256W | |||
12 | 52W | |||
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Authors: Melissa Barker, Donald I. Barker, Nicholas F. Bormann, Krista E. Neher
1st edition
538480874, 978-1285402147, 1285402146, 978-0538480871
