Modeling for Insight
- In the models in this chapter there is a blank cell that leads to an error in the NPV calculation. For example, in M1 the blank cell is in E21, representing the fact that the cash flow in Year 2 is zero. The NPV function ignores the blank cell, thereby discounting cash flows in Years 3-8 to Year 2, not Year 1. The error in this mode version is $12,032, or about 10%.
- Page 209, Figure 8.9: Cell D1 should be M3, not M2. Also in Figure 8.10.