In addition the firms cost of capital of 9 is in cell a4


Consider the following projected cash flows in the indicated cells in Excel for years zero through 2, respectively: A1= -$1000, A2= $600, A3= $500. In addition, the firm's cost of capital of 9% is in cell A4. Which of the following would be the correct formula to compute the NPV of this project?

A) NPV(A4, A1:A3) B) NPV(A4, A2:A3) + A1

C) NPV(A4, A2:A3) - A1 D) Sum(A1:A3/(1+A4)^3

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Finance Basics: In addition the firms cost of capital of 9 is in cell a4
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