NPV as a Function of discount Rate .Year 0 1 2 3 4 5 .Cash flow:-1000 450 350 250 150 50 .IF Discount rate=10% NPV=-1000+npv(10%,450,350,250,150,50) NPV=19.67 Do Project .IF Discount rate=15% NPV=-1000+npv(15%,450,350,250,150,50) NPV=-69.04 THE COURSE OF FINANCE 2017 SPRING SJTU 12 Don't Do ProjeetTHE COURSE OF FINANCE 2017 SPRING SJTU 12 Do Project •Year 0 1 2 3 4 5 •Cash flow:-1000 450 350 250 150 50 •IF Discount rate=10% •IF Discount rate=15% NPV=-1000+npv(10%,450,350,250,150,50) NPV=19.67 NPV as a Function of Discount Rate NPV=-1000+npv(15%,450,350,250,150,50) NPV=-69.04 Don’t Do Project