All categories

2 years ago

Anyone have an idea how to create a NPV Spreadsheet which intakes a 6% discount factor.

Business

1 answer:

Whitepunk [10]2 years ago

5 0

The way to calculate an NPV Spreadsheet using the NPV Function are:

=NPV(discount rate, series of cash flow)
Step 1: Set a discount rate in a cell.
Step 2: Establish a series of cash flows (must be in consecutive cells).
Step 3: Type “=NPV(“ and select the discount rate “,” then select the cash flow cells and “)”.

<h3>What is an NPV Function?</h3>

This refers to the excel function that is used to calculate the net present value and the discount rates for cash flows.

Hence, we can see that given that you have the discount factor, the annual operating costs, and annual benefits, you would then need to add the present value of all +ve cash flows and subtract the present value of all -ve cash flows.

Read more about discount factors here:

brainly.com/question/8965865

#SPJ1

You might be interested in

a data warehouse is a database of finely detailed customer and market information that needs to be sifted through for significan

ladessa [460]

You need to ask your parents about this question

6 0

4 years ago

Which report is constructed immediately prior to preparing the financial statements with the purpose of demonstrating that the a

White raven [17]

The report that is constructed immediately prior to preparing the financial statements with the purpose of demonstrating that the accounts balance is called : Adjusted trial balance

<h3>What is an adjusted trial balance?</h3>

Adjusted trial balance is an account prepared that shows the arithmetic accuracy of the ledger. This balance list the general ledger account balances after any adjustments have been made.

An adjusted trial balance include:

Adjustment for prepaid and accrued expenses.
Depreciation

Therefore, an adjusted trial balance is a report, constructed immediately prior to preparing the financial statements with the purpose of demonstrating that the accounts balance.

Learn more about adjusted trial balance here: brainly.com/question/14274904

3 0

2 years ago

Martinez Furniture Company started construction of a combination office and warehouse building for its own use at an estimated c

baherus [9]

Answer:

$530,672

Explanation:

Base on the scenario been described in the question, we can use the following method to compute the avoidable interest on this project

Use the attached file below to find the solution to given problem .

3 0

4 years ago

1. John wants to round 5.64 to the nearest tenth using a number line. He is

pickupchik [31]

Answer:

Explanation:

5.6

6 0

3 years ago

Jimmy's Peanut Farm wants to increase the quantity of peanuts that it sells by 1 percent. The price elasticity of demand for pea

slega [8]

Answer: Jimmy's Peanut Farm has to decrease its prices by 2.5% in order to achieve a 1% increase in the quantity of peanuts it sells.

Jimmy's Peanut Farm can increase the quantity sold by 1% only when the demand for peanuts increases. Demand for peanuts will increase only when the price of peanuts decrease. The Price Elasticity of Demand measures the responsiveness of demand to a percentage change in price.

The formula for Price Elasticity of Demand (PED) is given by the formula:

$\mathbf{PED = \frac{percentage change in quantity}{percentage change in price}}$

We have:

Percentage increase in quantity 1% or 0.01

Price Elasticity of Demand (PED) 0.40

Re-arranging the PED formula above we get,

$\mathbf{percentage change in price}= \frac{percentage change in quantity}{PED} *100}$

Substituting the values in the equation above we get,

${percentage change in price} = \frac{0.01}{0.4}*100 =2.5$

5 0

4 years ago