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Using the NPV Function Discount rate 7% Years Cash Flows 0 ($100,000) 1 $6,000 2 $7,000 3 $8,000 4 $9,000 5 $10,500 6 $11,500 7
| Using the NPV Function | ||||||||||
| Discount rate | 7% | |||||||||
| Years | Cash Flows | |||||||||
| 0 | ($100,000) | |||||||||
| 1 | $6,000 | |||||||||
| 2 | $7,000 | |||||||||
| 3 | $8,000 | |||||||||
| 4 | $9,000 | |||||||||
| 5 | $10,500 | |||||||||
| 6 | $11,500 | |||||||||
| 7 | $12,600 | |||||||||
| 8 | $15,000 | |||||||||
| 9 | $17,000 | |||||||||
| 10 | $70,000 | |||||||||
| Total | $66,600 | |||||||||
| NPV | <== Use the NPV function to calculate the Net Present Value of this proposed investment. | |||||||||
| Format to two decimal places. | ||||||||||
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