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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
q20 Computing net present value. Magatech, a computer software developer, is considering a software development project that requires an initial investment of $200,000 and sub-sequent investment of $150,000 and $100,000 at the end of the first and second years. Megatech expects this project to yield annual after-tax inflows for 6 more years: $90,000 at the end of each year for the third through 8 years. Megatech's after-tax cost of capital is 10%. Calculate the NPV of this project.
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Please answer and explain with excel. Please explain how I allow for the after-tax cost of capital of 10% within excel.
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Thank you in advance,
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