Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7. A firm is planning to invest in an Energy project. The projected end of year revenue and costs/investments are in the spreadsheet. What is

image text in transcribed
image text in transcribed
7. A firm is planning to invest in an Energy project. The projected end of year revenue and costs/investments are in the spreadsheet. What is the present value of the revenue? What is the present value of the costs/investments? Should the firm undertake this project? Assume that the discount rate for this project is 20%. Year Revenue Costs/Investments 1 $329,977 $109,505 2 $10,586 $280,826 3 $437,626 $385,327 4 $265,630 $355,009 5 $416,218 $239,538 6 $71,039 $107,311 7 $193,601 $120,823 8 $455,065 $102,330 9 $379,797 $20,474 10 $111,188 $289,570 11 $171,019 $327,044 12 $333,499 $441,788 13 $144,685 $217,157 14 $232,609 $353,620 15 $210,745 $358,078 16 $64,836 $455,383 17 $61,399 $394,296 18 $435,507 $292,405 19 $337,676 $329,882 20 $97,545 $209,113 21 $305,651 $441,600 22 $379,717 $321,987 23 $186,086 $479,058 24 $388,255 $232,223 25 $424,530 $480,835 26 $122,928 $264,805 27 $220,068 $43,488 28 $333,011 $38,745 29 $261,334 $99,282 30 $429,941 $476,542

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Bank Credit Analysis Handbook

Authors: Jonathan Golin, Philippe Delhaise

2nd Edition

ISBN: 0470821574, 978-0470821572

More Books

Students also viewed these Finance questions