Explore BrainMass
Share

Explore BrainMass

    For the cash flows in the previous below, what is he NPV at

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    For the cash flows in the previous below, what is he NPV at a discount rate of zero percent? What If the discount rate is 10 percent? If it is 20 percent? If it is 30 percent?

    Year Cash Flow
    0 -$18,000
    1 9,800
    2 7,500
    3 7,300.

    © BrainMass Inc. brainmass.com October 10, 2019, 12:44 am ad1c9bdddf
    https://brainmass.com/economics/finance/npv-discount-rate-304769

    Solution Preview

    See the attached file.
    You could use NPV function in Excel for this purpose.

    The NPV function is pretty simple to use. Just type:
    =NPV(rate, free cash flow1, free cash flow 2, ... free cash flow n) to run the calculation. Please see the attached Excel file for results.

    NPV's limitations.

    Just like DCFs and any sort of ...

    Solution Summary

    The solution provides detailed explanations and calculations for the problem, including calculation in the Excel file.

    $2.19