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Please show the Excel cell reference. Thank you in advance :) ill leave a thumbs up A E E H J K L 1 Capital
Please show the Excel cell reference. Thank you in advance :) ill leave a thumbs up
A E E H J K L 1 Capital Investment Decisions and the Time Value of Money 2 Compute NPV - equal net cash inflows 3 Woodsy Music is considering investing $625,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $90,000 per year for the next nine years. 4 5 Use the blue shaded areas on the ENTERANSWERS tab for inputs. 6 7 Always use cell references and formulas where appropriate to receive full credit. 8 9 Requirements 1 Assuming that Woodsy Music uses an 8% hurdle rate, what is net present value (NPV) of the studio investment? 10 Enter the future cash flow expected in Year 1 in cell A4. In the next cell below type in the cash flow expected in Year 2. a. Continue in the same fashion until all future cash flows are shown in separate cells, in the order in which they are expected to be received. 11 b 12 Enter the NPVin the last cell using the Excel NPV function. 13 2 Is this a favorable investment? 14 D H M N U K L R . Assuming that Connors Music uses an 8 % hurdle rate, what is net present value (NPV)ofthe studio investment? Always use cell references and formulas where appropriate to recelve full credit. 2 8 12 1: 2. Is this a favorable investment? Yes or No 16 17 18 20 21 22 24 25 26 28 29 30 32 33 34 36 7Step by Step Solution
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