Question
Tesla is planning to produce an all-electric family car and expects the following cash flows (in $ million) at the end of each year:
Tesla is planning to produce an all-electric family car and expects the following cash flows (in $ million) at the end of each year: Year 0 1 2 3 4 5 Cash flow -130 10 20 40 80 110 The required return for this project is 12%. Create an Excel spreadsheet with the present value of each cash flow. What is the project's NPV (in $ million)? There's an easier way: What is the NPV using Excel's NPV() function? Note that Excel's NPV function discounts all the cash flows in the range, even the first one.
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