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Assignment #5 Work this problem out using an Excel spreadsheet. Short answer questions can be answered right in a cell in the spreadsheet so you

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Assignment \#5 Work this problem out using an Excel spreadsheet. Short answer questions can be answered right in a cell in the spreadsheet so you just have to submit one file (your spreadsheet). You should only have to set the problem up one time, but remember, you will need a net operating cash flow column (for payback period and SRR calculations) and a net total cash flow column (for NPV and IRR calculations) You are considering purchasing a machine that will initially cost $175,000.00. The machine is expected to last 6 years, and you project that you can sell the worn out machine at the end of 6 years for $58,000.00 Annual operating cash inflows and outflows are projected as follows, and are assumed to occur at the end of each year: Years 1 and 2 , cash inflow $48,000.00, cash outflow expenses $25,000.00; Years 3 and 4 , cash inflow $62,000.00, cash outflow expenses $27,000.00; and years 5 and 6 , cash inflow $63,000.00, cash outflow expenses $31,000.00. 4. Calculate the net present value of this investment using the =NPV function in Excel using the weighted cost of capital that you calculated in 3.b. 4.b. Assuming the cash flow projections are all correct, and you can "lock in" your weighted cost of capital for the life of the project, would this project have a positive or negative impact on your companies' wealth

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