Dear Sir or Madam,

I could really use some help with a few calculations and explanations for a capital purchase problem. Cost of capital is 10%. The answers should be the following: initial net cash flow $41,075 or close to it; net present value $3K or close to it, internal rate of return of 7% or close to it. As you can see I am way off.

Please show me how to adjust my calculations. Also, based on the cost and a 5 year term, do I have the correct straight line depreciation? And, to find the IRR, in Excel I used the formula =IRR(values) and for the values I have used the Net Income After Taxes. Is this the correct set of values to use?

I sent a similar question earlier and I really appreciated how this expert responded with how to calculate the values in Excel and also had the calculations figured. If you can also do this to make it clearly understood, that would be fantastic. Here is a link for a demonstration...

http://www.chegg.com/homework-help/questions-and-answers/hello-need-help-calculations-explanations-answers-following-initial-net-cash-flow-6k-close-q23495463

Price Per Unit Initial Cost (Year 0) Total Costs for Term Operating licenses for desktop applications (one time ony) Donor database license (initial fee Donor data base annual service Maintenance labor 9,600.00 S 9,600.c0S 9,600.00 Replacement Computer Costs Replacement Computer Install Labor 12,050.00S 12,050.00 2,050.00 $41,075.00 Contributed Income Differential Depreciation of Equipment Assets $41,075.00 10,268.75 Net Income Before Tax Net Income After Taxes 530,806.25 Adjustment (Nan-cash $30,806.25 $30,806.25 $7,122.90 $20,109.75 0%