90.2K

Verified Solution

Link Copied!

Kinkdly please show the formulas as well, Thank You!

Required information [The following information applies to the questions displayed below.] This Applying Excel worksheet includes an explanation of the Present Value (PV) and Net Present Value (NPV) formulas. Use the PV and NPV formulas in Excel to solve for the three scenarios in the spreadsheet. After completing all three requirements, verify the amounts from each scenario below. Present Value should now be $6,209.21. Present Value should now be $28,430.90. For Scenario C: NPV of Investment ($2,540.87). If you did not get any of these answers, reset the values indicated in the scenarios above and review your formulas based on what you learned in the Tutorial tab. c. A company is planning to invest in a project over a 5-year period, but wants to know its financial implications. It expects the cash in-flow return on the investment to steadily increase over the 5 years. Using the information below, help determine the Total Net Cash Flows, the Net Present Value and the estimated Payback Period. Note: Estimate the payback period to the nearest year. \begin{tabular}{|l|lr|r|} \hline Discount Rate & \multicolumn{2}{|c|}{12%} \\ \hline \multicolumn{2}{l|}{} & \multicolumn{2}{|c|}{} \\ \hline Investment Project & Cash Flow & Total Net Cash Flow \\ \hline Initial Investment & $ & (5,000) & ? \\ \hline Year 1 & $ & 800 & ? \\ \hline Year 2 & $ & 900 & ? \\ \hline Year 3 & $ & 1,500 & ? \\ \hline Year 4 & $ & 1,800 & ? \\ \hline Year 5 & $ & 3,200 & ? \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline NPV of investment & ? \\ \hline Estimated Payback Period & \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert

See Answer