PMP Exam Prep and PMP Certification

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New Project management question?

June 28th, 2010 · 2 Comments







This is one of the questions in my homework for project management this week. Does anyone know the best way to do this in excel spreadsheet?

A four-year financial project has net cash flows of $20,000; $25,000; $30,000; and $50,000 in the next four years. It will cost $75,000 dollars to implement the project. If the required rate return is 0.2, conduct a discounted cash flow calculation to determine the NPV.


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Tags: PMP Questions

2 responses so far ↓

  • 1 sexyin // Jun 28, 2010 at 10:17 pm

    JUST DO IT AND SEE WHAT HAPPENS YOU KNOW

  • 2 FatHalo // Jun 28, 2010 at 10:41 pm

    I will assume the implementation costs are paid at the beginning of the period, and cash flows come at the end of each year. The Net Present Value of the project is:
    NPV = -75 + 20/(1.2) + 25/(1.2)^2 + 30/(1.2)^3 + 50/(1.2)^4
    = $501.5432

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