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Question 1: The spreadsheet below shows the cash flows for a project. The project's cash flows occur smoothly throughout the year. The book recommends mid-year
Question 1: The spreadsheet below shows the cash flows for a project. The project's cash flows occur smoothly throughout the year. The book recommends mid-year discounting to more appropriately approximate the NPV of the project. What should be the formula in cell B13? Approximate the value that you would get in cell B13 (show your calculation and don't use Excel). A B C 1 MID-YEAR DISCOUNTING 2 Discount rate 10% 3 4 Year Cash flow 5 0 -1,000 6 1 200 7 2 400 8 3 800 9 4 900 10 5 1,000 11 12 NPV (end-year) 1,349.08
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