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Set up an excel command/function that is able to reproduce the answer given (increment rate of return=17.4%) with the given cash flow. Statement of incremental
Set up an excel command/function that is able to reproduce the answer given (increment rate of return=17.4%) with the given cash flow.
Statement of incremental cash flws Ye: Details ash floash flow Increment Machine 1 Machine 2 Cash flow (1-2) 0 First cost, -250,000 -225,000 1-6 AOC, per year in S -231,000 -235,000 3 Overhaul, in s -26.000 4 Overhaul, in s -39,000 6 Salvage. S 50.000 10,000 -25.000 4,000 26,000 -39,000 40.000 8.22 Write PW-based incremental ROR equation using CF vs - CF, 0=-25,000 + 4000(P/A,Ai*,6) + 26,000(P/F,Ai*,3) 39,000(P/F,Ai*,4) + 40,000(P/F, Ai*,6) Ai* = 17.4% (spreadsheet)Step by Step Solution
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