Calculate the Net Present Value of the Free Cash Flows, using the NPV function in Excel where, Weighted Average Cost of Capital: 5%, Cash Flow in Year 1: 100, Cash Flow in Year 2: 100, Cash Flow in Year 3: 300, Cash Flow in Year 4: -200, Cash Flow in Year 5: 500, Terminal Value: 1400?
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Answer:
The NPV formula. It's important to understand exactly how the NPV formula works in Excel and the math behind it. NPV = F / [ (1 + r)^n ] where, PV = Present Value, F = Future payment (cash flow), r = Discount rate, n = the number of periods in the future is based on future cash flows.
Explanation:
It is calculated by taking the difference between the present value of cash inflows and present value of cash outflows over a period of time
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0
Answer:
2893.333333333
Explanation:
it will be short
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