Function: NPV; Formula: Add, Subtract; Cell Referencing Using Excel to Determine the Net Present Value PROBLEM Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. Amusement parks need to rotate exhibits to keep people interested. Additional information concerning the potential investment follows. Original cost of investment Estimated sales value at end of 5 years Expected increase in annual cash flows Estimated useful life in years Borrowing rate Cost of capital $ 136,000 60,000 25,000 5 years 8.0% 10.0% Student Work Area Required: Provide input into cells shaded in yellow in this template. Use the NPV function with mathematical formulas and cell referencing to the Problem area in the input cells. Calculate the net present value of this project to the company using Excel's NPV function. Net present value
Function: NPV; Formula: Add, Subtract; Cell Referencing Using Excel to Determine the Net Present Value PROBLEM Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. Amusement parks need to rotate exhibits to keep people interested. Additional information concerning the potential investment follows. Original cost of investment Estimated sales value at end of 5 years Expected increase in annual cash flows Estimated useful life in years Borrowing rate Cost of capital $ 136,000 60,000 25,000 5 years 8.0% 10.0% Student Work Area Required: Provide input into cells shaded in yellow in this template. Use the NPV function with mathematical formulas and cell referencing to the Problem area in the input cells. Calculate the net present value of this project to the company using Excel's NPV function. Net present value
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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