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I need help fixing an assignment based on feedback below. Can you give a table of the present values of different scenarios and also affect
I need help fixing an assignment based on feedback below.
"Can you give a table of the present values of different scenarios and also affect with different interest rates."
8223 III! IEI ' >3 \\' 56 ..ill 90 l e EGN3214...ignment 3 / Assignment 3: Present Value Introduction A decision to purchase a major piece of equipment is of financial importance. Deciding on this cannot be arbitrary, and so utilizing financial tools of Future Value (W) and Present Value [PV) helps to quantify the value of money over time. If given a group of scenarios write a program that can provide a quantiable outcome to determine if a purchase is good or not, based on the initial investment cost. Problem Statement A510,000 piece ofequipment is to be purchased and has a 10year life span; it will be resold for a specific amount, and during its lifetime, will have generated a guaranteed amount of revenue. Determine the risk of several scenarios for purchasing a 5 10,000 piece of equipment at a 5% xed interest rate over the next 10 years, using a program designed to have the user input each scenario and display the calculated results in a quantifiable table for analysis. Methodology The original purchase price is known at $10,000 The resale amount at 10 years and the annual revenue generated for the same 10 years is as follows: Scenario Number Resale Amount at 10 Years Annual Revenue Generated I ' 1 ' $10,000 ' s 500 ' ' 2 ' 5 9,000 ' S 600 ' ' 3 ' 5 5,000 ' $1,000 ' ' 4 ' 5 3,000 ' $1,200 ' 5 S 0 $1,500 The Interest Rate will initially be set at 5%, however evaluation risk will need to be accounted for, so calculating alternative scenarios with different Interest Rates will be important. The nancial math Using the equation below, calculate the Present Value based on the Future Value of money, along with the knowns above. To do so: The FV will be set as the Resale Amount at 10 years, the r will be set at 5%, and H" a will be for 10 y For Scenario Number 1 this will output 3 Present Value of 5 6139.13. In other words, purchasing power of $6139.13 today would be the same as $10,000 in 10 years, due to inflation withStep by Step Solution
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