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Problem 5-35 Value of mixed streams. Find the present value of the streams of cash flows shown in the following table. Assume that the
Problem 5-35 Value of mixed streams. Find the present value of the streams of cash flows shown in the following table. Assume that the firm's opportunity cost is 12%. Important: Do not use cell references to cells in rows 7 to 11. For all required answers, use cell references to values starting in row 16. A B C Year 1 Cash flow $ Year Cash flow Year Cash flow -2,000 1 $ 10,000 1-5 2 3,000 2-5 5,000/yr 6-10 $10,000/yr 8,000/yr 3 4,000 6 7,000 4 6,000 5 8,000 Solution Project A Opportunity cost 12% CF1 $ -2.000 CF2 S 3.000 CF3 $ 4.000 CF4 S 6.000 CF5 S 8.000 Net present value Project B Opportunity cost 12% CF1 $ 10.000 CF2 S 5.000 CF3 S 5.000 CF4 $ 5.000 CF5 $ 5.000 CF6 $ 7.000 Net present value Project C Opportunity cost 12% CF1 $ 10.000 CF2 S 10.000 CF3 $ 10.000 CF4 $ 10.000 CF5 $ 10.000 CF6 $ 8.000 CF7 S 8.000 CF8 S 8.000 CF9 S 8.000 CF10 S 8.000 Net present value quirements Points 1 In cell E22, by using cell references to the given data and the function NPV, calculate the net present value of project A. 1 2 In cell E32, by using cell references to the given data and the function NPV, calculate the net present value of project B. 1 3 In cell E46, by using cell references to the given data and the function NPV, calculate the net present value of project C. 4 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. 1 0
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