Using Excel

Chapter 7 Using Excel to Make an NPV Profile

Discount Rate IRR: IRR(E7:I7) NPV: NPV(C6,F7:I7)+E7 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25%

10% 13.99% $7.16

0 -81.6

1 28

2 28

3 28

Instructions Enter the range of discount rates down a column as shown in cel Highlight the area containing your range of discount rates and the From the Data pull-down menu, select Table. Since discount rates are in a column use "Column input cell". In the Column input cell box, enter C5 or click on C5 to tell Excel changing this cell. Click OK.

After the NPVs have appeared in column C, highlight the discoun Click the Chart icon or select Chart from the Insert pull-down men Choose XY(Scatter) as your Chart type and click on the Chart su Click Next to further customize your chart or click Finish to displa

4 28 Cash Flows

wn a column as shown in cells B10 to B34. nge of discount rates and the NPV cells (B9:C34).

use "Column input cell". 5 or click on C5 to tell Excel to recalculate NPV by

umn C, highlight the discount rates and NPVs (B10:C34). rom the Insert pull-down menu. ype and click on the Chart sub-type shown in the text. chart or click Finish to display your chart.