PLEASE SHOW ME ONLY HOW THEY CALCULATED THE NPV I JUST NEED THE FORMULAE THAT LED TO CREATION OF THE TABLE GIVEN THOSE SPECIFICALLY NPV = First Cost for paving (a)

Design Cost for paving (b)

+ Annual savings * (P/A, IRR, years) (c)

Annual Maintenance cost * (P/A, IRR, years) (d)

The IRR on the stockpile area is calculated considering the estimated values of each factor and the savings that this work will bring to the contractor. The savings are calculated using the difference between previous combined loss and the new (reduced) loss. *The cost for paving is quantity (3700 Tons) of asphaltic concrete times its unitary cost (20\$/Ton) Savings = Annual production Aggregate Price (8 Loss with Paving ) Savings =2500001.50(0.080.02) Savings =22,500.00($/ year ) The annuity will be $21,500 (savings minus the maintenance costs) The initial investment (PV) is $79,000 (First cost for paving plus design cost for paving) Now the IRR we can be determined using the excel function RATE: IRR=RATE(nper,pmt,pv)IRR=RATE(10,21500,79000)IRR=24.07% The IRR on the stockpile area is calculated considering the estimated values of each factor and the savings that this work will bring to the contractor. The savings are calculated using the difference between previous combined loss and the new (reduced) loss. *The cost for paving is quantity (3700 Tons) of asphaltic concrete times its unitary cost (20\$/Ton) Savings = Annual production Aggregate Price (8 Loss with Paving ) Savings =2500001.50(0.080.02) Savings =22,500.00($/ year ) The annuity will be $21,500 (savings minus the maintenance costs) The initial investment (PV) is $79,000 (First cost for paving plus design cost for paving) Now the IRR we can be determined using the excel function RATE: IRR=RATE(nper,pmt,pv)IRR=RATE(10,21500,79000)IRR=24.07%