Boston College
Rather, we have to use the NPV and IRR functions: NPV (Rate, Value1, Value2, …) IRR (Values, Guess) We know from Equation (2.9) in Chapter 2 that the net present value (NPV) of an investment, with an initial investment outlay I and future cash flows Ct received in Years 1 through T, is calculated as: (E2.6) Excel’s NPV function will make ... ................
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