M 4 i Function: NPV: Formula: Add, Subtract; Cell Referencing 2 3 Using Excel to Determine the Net Present Value PROBLEM 5 Thunder Corporation, an amusement park, is considering a capital 6 investment in a new exhibit. Amusement parks need to rotate exhibits to 7 keep people interested. Additional information concerning the potential 8 investment follows 10 Original cost of investment $ 136,000 Estimated sales value at end of 5 years 60,000 Expected increase in annual cash flows 25,000 Estimated useful life in years Borrowing rate 8.0% Cost of capital 10.0% Student Work Area Required: Provide input into cells shaded in yellow in this template. Use the NPV function with cell referencing to the Problem area in the input cell. Use a math formula in the field in which the cash flow for the salvage value is expected to occur, and separately, to account for the initial cash flow in the formula after the function has been inputted. 11 Calculate the net present value of this project to the company using Excel's NPV function. 12 5 years 13 14 15 16 Net present value