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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
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 | -160 | 10 | 20 | 40 | 80 | 110 |
The required return for this project is 16%.
Attempt 1/5 for 10 pts.
Part 1
Create an Excel spreadsheet with the present value of each cash flow. What is the project's NPV (in $ million)?
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Attempt 1/5 for 10 pts.
Part 2
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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