Question
How would I plug this into excel to get the answer? Need specifics around exactly formual to use in excel. Suppose you are considering a
How would I plug this into excel to get the answer? Need specifics around exactly formual to use in excel.
Suppose you are considering a new venture that requires a (one time) upfront investment. There is a three year lag before sales start coming in. The table below lays out the timing of the relevant cash flows. The discount rate is 10% per year.
What is the present value of the venture's cash flows (including the upfront cash outlay)?
Initial Investment -$120,000
Cash Flows
Year 0 - 0
Year 1 - 0
Year 2 - 0
Year 3 - 70000
Year 4 - 70000
Year 5 - 70000
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