Question

Calculate Net Present Value (NPV) from the following data

Cost of Machinery	2000000
Cash inflows -1 year	60000
Cash inflows – II year	80000
Cash inflows – III year	82000
Cost of capital	12%

Answer 1

Procedure: 

Step 1 – Open a new blank worksheet in LibreOffice Calc 

Step 2 – Enter the following details in the respective cells.

Step 3 – Enter the formula in B6 = NPV (12%, B2:B4)-B1 to get NPV 

Output:

Net Present Value

24287.08