Question
this is a excel homework,how to do this in excel? The following table shows two schedules of prospective operating cash inflows, each of which requires
this is a excel homework,how to do this in excel?
The following table shows two schedules of prospective operating cash inflows, each of which requires the same net initial investment of $10,000 now. The required rate of return is 8% compounded annually. All cash flows occur at the end of each year. In terms of net present value, which plan is more desirable? Use cell references and the PV function to answer this question.
Ans. Annual Cash Flow
Year Plan A Plan B
1 $3,000 1000
2 $5,000 2000
3 2,000 3000
4 3000 4000
5 2000 5000
Total 15000 15000
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