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You need to create an excel spreadsheet that answers the following questions. Solve the problem using TVM functions/formulas from Excel. Also, all work should
You need to create an excel spreadsheet that answers the following questions. Solve the problem using TVM functions/formulas from Excel. Also, all work should be set up in such a way that you could change one parameter and have the formula automatically update, i.e. you need an assumptions section. In other words, you would want to be able to do a basic type of "what-if"" analysis. Hard-coding values is bad, formulas are good. 1. Find the FV of $500, 10 years in the future if the opportunity cost rate is 5.93%. 2. Find the PV of $5,000 to be delivered in 15 years if the opportunity cost rate is 4.22%. 3. Would you prefer the following: a. An ordinary annuity where you receive $500 each year for 7 years if the opportunity cost is 5.11 b. % c. An annuity due where you receive $490 each year for 7 years if the opportunity cost rate is 5% 4. What is the net present value of the following stream of cash flows assuming the opportunity cost rate is 11% and 10%? Solve NPV using each cash flow and the NPV function in Excel. -$12,000 Year 0: Year 1: $3,000 Year 2: $2,000 Year 3: $5,000 Year 4: -$500 Year 5: $7,000
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