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Can Use Excel For This! Complete ALL Parts for Thumbs Up! Thanks Annual Discount Interest Rate 5% Revenue end 5th year $25,000 Revenue end 4th

Can Use Excel For This! Complete ALL Parts for Thumbs Up! Thanks

Annual Discount Interest Rate 5%
Revenue end 5th year $25,000
Revenue end 4th year $32,000
Revenue end 3rd year $35,000
Revenue end 2nd year $30,000
Revenue end 1st year $27,000
Expected Resale $ after 5 yrs $50,000
Total Life 5 yrs
Annual Maintenance Costs $4,000
The initial equipment cost $120,000

You're wanting funds to purchase new equipment. You plan to sell said equipment at end of the 5th year. You'll pay for maintenance during 5th year prior to selling.

a) Draw the overall cashflow diagram

b) What's the "present value"

c) What's the IRR

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