Type the correct NPV of the espresso machine, with the outlay handled outside the function.
Type the correct NPV of the espresso machine, with the outlay handled outside the function.
Answer
=NPV(0.08,400,400,400)-1000
Returns 30.84. The three inflows are discounted from period 1; the 1,000 outlay is subtracted undiscounted.
Bigel, Introduction to Financial Analysis (CC BY 4.0) §11.12–11.17