1. Inanexceldocumentpleaseanswerthefollowingandpleaseshowwork:
3. 1)ABCCompanyisinterestedinbuyingapieceofequipmentfor$150,000.Theaverageusefullifeoftheequipmentisanticipatedtobefiveyears,withprojectedannualcashflowof$22,000.Calculatethenetpresentvalueoftheequipmentat8%.Assumenosalvagevalue.
5. 2) The department you manage would like to buy a piece of equipment for $20,000 with projected cash flows of $4,500 per year over the eight-year useful life. Calculate the net present value at 10%. Assume no salvage value.