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If using excel please explain equations used Question 4 (35 points): Consider a discount rate of 8% for the following cash flow: L=$160,000 C=160,000 |
If using excel please explain equations used
Question 4 (35 points): Consider a discount rate of 8% for the following cash flow: L=$160,000 C=160,000 | C=135,000 C=110,000 I=60,000 I=160,000 I=80.000 1=80.000 1=95.000 1=60,000 |1=160,000 | I=80,000 | I=80,000 1595,000 I=110,000 I=120,000 I=130,000 I=50,000 0 1 2 3 | 4 5 6 7 8 9 10 C: Cost, I: Income, L: Salvage Value Year Calculate the following economic yardsticks for this project a) NPV b) ROI c) IRR d) Benefit Cost Ratio e) Present Value Ratio f) Payback time g) Based on above results, conclude if this investment is economically satisfactory and why (how your calculations compare to the guidelines for economic projects) Note: One may use IRR function in software and or Excel, but need to show the equations (balance of costs and revenues)Step by Step Solution
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