SINCE the cash flow's from this Investment will continue for' I' years . WE decided to salve for the Net Present Value by using the NPV function in Excel . This is shown below . The 17 cash flows are presented in columns C , D....S. The initial cash flow of $2 ML is presented in cell CB and each subsequent cash flow grows at 5%6 until $ 4. 365749 N/} is presented in year 17 in cell 58. ( Note that columns G through O are not presented . ! The NPV' of the project is calculated using the NPY formula = NPVICE. [8: 58 1 in cell BIO . The NPV of the future cash flows is $21. 8GM . A D ITE 1.015 I 1 . 1 41 I 2 4 17 2 2.1 2.205 2.31525 4.157856 4.365749 10 NPV $21. 80 11 12 EXCEL NPV FORMULA _ NPVICE. [8: 58 ) 13 Evaluate : The value today of the cash flows produced by the drug over the next 17 years is $ 21. 85 million . Because the cash flows are expected to grow at a constant rate , we can use the growing annuity formula as a shortcut . Evaluate :` With a donation of $ 1.12, 8:57. 14 today and 706 interest , the university can withdraw the interest every year ( $10,Only; and leave the endowment intact to generate the next year's $10, 0no . It can keep doing this forever