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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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