{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

This preview shows pages 1–2. Sign up to view the full content.

name Anusha Chari ID# 123456789 Step 1: you have been given a discount rate and series of cashflows. Find the NPV. section 303 page 1 disc. rate 6.25% year 0 1 2 3 4 5 Payments -50.00 10.00 11.00 13.00 17.00 25.00 disc. fac 1.00 0.94 0.89 0.83 0.78 0.74 PV -50.00 9.41 9.74 10.84 13.34 18.46 NPV 11.80 Step 2: Write the formula from cell F10 here ---> =1/(1+\$D\$6)^F8 Step 4: Enter the discount rate you may have to start with an apostrophe that makes the NPV equal do not copy relative references, do not enter a real formula. to zero ? (below) your answer will look something like: '\$B\$4*\$C8-sqrt(D\$1) 13.33% Step 3: complete the table below - what is the NPV at different discount Enter your answer to at rates? hint: it will be easiest just to type answers in the table. least one decimal place. hint: you might want to use the disc rate NPV "irr" or "goal seek" functions. 2.00% 20.98 4.00% 16.42 6.00% 12.29 Step 5: When you are done, reset the 8.00% 8.52 discount rate to 6.25% 10.00% 5.08 12.00% 1.94

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}