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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%

3a. Determine the NPW

3b. Determine the AW

3c. Determine the FW

3d. Determine the IRR

3f. Graph the NPW versus MARR

3G. Are we making or losing money at 13% MARR?

How can you tell?

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