The XNPV function can calculate NPV for any(possibly irregular) series of cash flows. Look thisfunction up in Excel’s online help. Then use it todevelop a spreadsheet model that finds the NPV ofthe following series: a payment of $25,000 today(assumed to be June 15, 2014), and cash inflows of$10,000 on March 1, 2015; $15,000 on September 15,2015; $8000 on January 20, 2016; $20,000 on April 1,2016; and $10,000 on May 15, 2016. Discount theseback to “today” using a discount rate of 12%.

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
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The XNPV function can calculate NPV for any
(possibly irregular) series of cash flows. Look this
function up in Excel’s online help. Then use it to
develop a spreadsheet model that finds the NPV of
the following series: a payment of $25,000 today
(assumed to be June 15, 2014), and cash inflows of
$10,000 on March 1, 2015; $15,000 on September 15,
2015; $8000 on January 20, 2016; $20,000 on April 1,
2016; and $10,000 on May 15, 2016. Discount these
back to “today” using a discount rate of 12%.

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