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INSTRUCTIONS: You are required to plot the NPV as a function of the two discount rate spin buttons. In other words, calculate NPV for all
INSTRUCTIONS: "You are required to plot the NPV as a function of the two discount rate spin buttons. In other words, calculate NPV for all discount rates between the minimum and maximum rate and plot those values. That's called the NPV profile.
The spin button for the Minimum Discount Rate should go from 1% to 5% (increment by 1) and the Maximum Discount Rate should go from 20% to 25% (increment by 1)."
I'm curious what excel formula I will need to use and how to input it to achieve the NPV for all of the discount rates. Thank you!!
Minimum discount rate Maximum discount rate 1.00% 25.00% NPV Discount Rate 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 19.00% 20.00% 21.00% 22.00% 23.00% 24.00% 25.00% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 0 (200,000,000) Cash Flows: Initial Cost: Annual Revenue Minus Annual Cost Profit Number of years until mine is depleted (200,000,000) 27,000,000 8,000,000 19,000,000 30 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000 8,000,000 27,000,000 8,000,000 19,000,000 27,000,000 8,000,000 19,000,000 27,000,000 8,000,000 19,000,000 27,000,000 8,000,000 19,000,000 Prepetual annual expense after mne is deple (6,000,000) Minimum discount rate Maximum discount rate 1.00% 25.00% NPV Discount Rate 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% 16.00% 17.00% 18.00% 19.00% 20.00%Step by Step Solution
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