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

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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.

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Solution Summary

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

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 ...

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