This intro problem practices NPV. NPV calculates the present value of equally spaced future cash flows, using a constant discount rate. Update the output cells to calculate each project's net present value. Rate is the annual discount rate. Today is the initial cost paid now, shown as a negative amount. Year 1 through Year 3 are the amounts paid or received at the end of each year. Costs are negative and receipts are positive; zero means no cash flow that year. Use NPV to discount Year 1 through Year 3, then add Today separately because it occurs now and should not be discounted.
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Your solution should use cell references so it updates automatically if the input cells change values.
Need help with NPV details and syntax? Review the NPV function guide first.
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