For this activity, you will create and submit a spreadsheet that will develop cash flow diagrams. The spreadsheet should be able to generate cash flows for up to ten years. Your Microsoft Excel Workbook should include a generic ready to use a template with two tabs. The first tab should recreate the example in the Figure below:

Be sure to include a column for positive cash flows one would expect as income from an investment. The second tab should generate a cash flow diagram for the following problem.

Your firm made a capital investment of $100,000 dollars in year zero. In each of the following six years, the investment is expected to generate after tax positive cash flows of $30,000. In year three, the project will require a $10,000 overhaul. When the project is ended in year six, there will be a clean-up cost of $15,000 and the equipment will have a salvage value of $10,000.

Be sure to include explanations/instructions.

C E 1 Year Capital Costs O&M Overhaul 2 0 -80,000 -12,000 3 1 -12,000 4 2 -25,000 3 -12,000 -12,000 6 4 7 -12,000 6 10,000 -12,000 10 $10 11 $0 12 -$10 13 -$20 14 -$30 15 -$40 16 -$50 17 -$60 18 Capital costs O&M Overhaul -$70 19 -$80 0 2 3 4 5 6 20 Year 21 22 Cash Flows (thousands)