Respond to the following scenario with your thoughts, ideas, and comments.

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financial.xls

NPV - IRR

FIN 615
NPV and IRR calculations
Cost of Capital 1.00%
Time/yr 0 1 2 3 4 5
Cash flow Input here
Discounted CF 0 0 0 0 0 0
NPV 0 =cf1/((1+n)^1) =cf2/((1+n)^2) =cf3/((1+n)^3) =cf4/((1+n)^4) =cf5/((1+n)^5)
PV factor 0.9900990099 0.9802960494 0.9705901479 0.9609803445 0.9514656876
IRR 0.00%

Sheet3