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Pleaes provide excel functions to fill missing cells ( ??? ) : Flower Engineerin

ID: 2644878 • Letter: P

Question

Pleaes provide excel functions to fill missing cells ( ??? ):

Flower Engineering is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: Expected Net Cash Flows Time Project A Project B 0 ($375) ($575) 1 ($300) $200 2 ($200) $200 3 ($100) $200 4 $600 $200 5 $600 $200 6 $975 $200 7 ($200) $0 Part 1: A) Net Present Value Cost of capital = 12% Cost of capital = 18% NPV A = ??? NPV A =??? (See example 2 at http://office.microsoft.com/en-us/excel-help/npv-HP005209199.aspx) NPV B = ??? NPV B =???

Explanation / Answer

Answer -

Expected Net Cash Flows Time Project A Project B 0 -375 -575 1 -300 200 2 -200 200 3 -100 200 4 600 200 5 600 200 6 975 200 7 -200 0 Cost of Capital 0.12 =NPV(0.12,B3:B10) =NPV(0.12,C3:C10) 0.18 =NPV(0.18,B3:B10) =NPV(0.18,C3:C10)