Question
The column your team has chosen costs $75,000, but will bring in $15,000 more revenue per year. It's expected to last 20 years, and also
The column your team has chosen costs $75,000, but will bring in $15,000 more revenue per year. It's expected to last 20 years, and also has an interest rate of 7%. Management has given you specific instructions to only go forward with the column if the payback period occurs in less than 10 years. Using the given data, create a cash flow table in excel starting at year 0 (when the investment in the column was made) up until year 10, and attach your spreadsheet. Keep in mind that the $15,000 in revenue per year starting in year 1 is not in present day dollars when doing your analysis and needs to be adjusted to present day dollars to calculate the cumulative present cash flow.
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