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I am having trouble understanding how to find the gold cells in this excel. If a

ID: 2814085 • Letter: I

Question

I am having trouble understanding how to find the gold cells in this excel. If anyone would be able to show me what function to use and how to work it.

Plan A Plan B Plan A Plan B Plan A Plan B Present Value of First 1 Cash Flows Present Value of First 2 Cash Flows Present Value of First 3 Cash Flows Present Value of First 4 Cash Flows Present Value of First 5 Cash Flows Present Value of First 6 Cash Flows Present Value of First 7 Cash Flows Present Value of First 8 Cash Flows Present Value of First 9 Cash Flows Present Value of First 10 Cash Flows Cash Flow in One Year Discount Rate Cash Flow Growth Rate Present Value of Growing Perpetuity $3,540.00 Cash Flow at Time 1 Cash Flow at Time 2 Cash Flow at Time 3 Cash Flow at Time 4 Cash Flow at Time 5 Cash Flow at Time 6 Cash Flow at Time 7 Cash Flow at Time 8 Cash Flow at Time 9 Cash Flow at Time 10 11.09% 15.52% 4.43% 0.00% Plan A Plan B Plan A Plan B Present Value of Cash Flow at Time 1 Present Value of Cash Flow at Time 2 Present Value of Cosh Flow at Time 3 Present Value of Cash Flow at Time 4 Present Value of Cash Flow at Time 5 Present Value of Cash Flow at Time 6 Present Value of Cash Flow at Time 7 Present Valuc of Cash Flow at Time 8 Present Value of Cash Flow at Time 9 Present Value of Cash Flow at Time 10 Present Value of All Cash Flows After Time 1 Present Value of All Cash Flows After Time 2 Present Value of All Cash Flows After Time 3 Present Value of All Cash Flows After Time 4 Present Value of All Cash Flows After Time 5 Present Value of All Cash Flows After Time 6 Present Value of All Cash Flows After Time 7 Present Value of All Cash Flows After Time 8 Present Value of All Cash Flows After Time 9 Present Value of All Cash Flows After Time 10

Explanation / Answer

Hello Sir/ Mam

Table #1

Table #2

Table #3

In this table, nothing special is done. Just, present values are summed till 1 cashflows, 2 cashflows and so on.

Table #4

The values from previous table are subtracted from 31920.65 to get these values.

I hope this solves your doubt.

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Cash Flow in one year $3,540.00 Discount Rate 11.09% 15.52% Cash Flow Growth Rate 0.00% 4.43% Present Value of Growing Perpetuity $31,920.65 $31,920.65 Formula Used =3540/11.09% =3540/(15.52%-4.43%)