A five-year project has a projected net cash flow of $15,000, $25,000, $30,000,
$20,000, and $15,000 in the next five years. It will cost $50,000 to implement the
project. If the required rate of return is 20 percent, conduct a discounted cash flow
calculation to determine the NPV.
Please explain using excel.© BrainMass Inc. brainmass.com March 4, 2021, 7:18 pm ad1c9bdddf
The answer to your question is $10,746. Please see the attached Excel spreadsheet for the calculation. Also, for your reference, here is some information for you regarding the net present value and a discounted cash flow calculation.
The Net Present Value (NPV) of an investment (project) is the difference between the sum of the discounted cash flows ...