Question
Using excel spreadsheet formulas to solve this problem A cash flow chart for a project at BillCo is shown below. Years Initial Cost Salvage Op
Using excel spreadsheet formulas to solve this problem
A cash flow chart for a project at BillCo is shown below.
Years | Initial Cost | Salvage | Op Costs | Benefits | Net Cash Flow | |||
0 | $(513,295.00) | $ (513,295.00) | ||||||
1 | $ (79,999.64) | $181,992.72 | $101,993.08 | |||||
2 | $ (82,609.63) | $189,818.41 | $107,208.78 | |||||
3 | $ (85,295.31) | $197,980.60 | $112,685.29 | |||||
4 | $ (88,058.87) | $206,493.76 | $118,434.89 | |||||
5 | $ (90,902.58) | $215,373.00 | $124,470.42 | |||||
6 | $ (93,828.75) | $224,634.03 | $130,805.28 | |||||
7 | $ (96,839.79) | $234,293.30 | $137,453.51 | |||||
8 | $73,240.00 | $ (99,938.14) | $244,367.91 | $217,669.77 | ||||
Use a MARR of 13% |
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3a. Determine the NPW |
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3b. Determine the AW |
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3c. Determine the FW |
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3d. Determine the IRR |
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3f. Graph the NPW versus MARR |
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3G. Are we making or losing money at 13% MARR? |
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How can you tell? |
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