Cost Benefit Analysis..PPTVIP

Locate the NPV function Cost Benefit Analysis, Slide 32 Copyright ? 2004, Jim Schwab, University of Texas at Austin We will search for the NPV function. First, type NPV in the Search for text box, and click on the Go button. The NPV function name will appear in the Select a function list box. Click on the OK button access the dialog box where the function arguments are entered. The arguments to the NPV function Cost Benefit Analysis, Slide 33 Copyright ? 2004, Jim Schwab, University of Texas at Austin The first argument to the NPV function is the discount rate, which we will enter directly as 8%. The second argument to the NPV function is the cells containing the projected savings for 4 lane expansion, Projected Savings!B2:B26. Remember to enter the quote marks around the name of the worksheet Projected Savings because it contains a space. With the arguments entered, click on the OK button. NPV for projected savings for 4 lane expansion Cost Benefit Analysis, Slide 34 Copyright ? 2004, Jim Schwab, University of Texas at Austin The NPV function returns the present value of the projected savings for 4 lane expansion, $2,668,694.05. Compute NPV of projected savings for 6 lane expansion Cost Benefit Analysis, Slide 35 Copyright ? 2004, Jim Schwab, University of Texas at Austin First, select the cell in which we Excel to return the present value of the savings, cell D10 on the Cost-benefit Analysis worksheet. Second, select the Function command from the Insert menu. Locate the NPV function Cost Benefit Analysis, Slide 36 Copyright ? 2004, Jim Schwab, University of Texas at Austin We will search for the NPV function. First, type NPV in the Search for text box, and click on the Go button. The NPV function name will appear in the Select a function list box. Click on the OK button access the dialog box where the function arguments are entered. The arguments to the NPV function Cost Benefit Analysis, Slide 37 Copyright ? 2004, Jim Schwab, University of Texas at Austin The fi