A 5-year project that costs 1.5 million has cash inflows of 200,000 in year 1 that increase by 100,000 every year until year 5 when they are 600,000. If the required return is 7%, what is the net present value? (Please show how to use in Excel)

A 5-year project that costs 1.5 million has cash inflows of 200,000 in year 1 that increase by 100,000 every year until year 5 when they are 600,000. If the required return is 7%, what is the net present value? (Please show how to use in Excel)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...

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A 5-year project that costs 1.5 million has cash inflows of 200,000 in year 1 that increase by
100,000 every year until year 5 when they are 600,000. If the required return is 7%, what is the
net present value? (Please show how to use in Excel)

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