Question
Vince plans to open a self-serve grooming center in a storefront. The grooming equipment will cost $430,000, to be paid immediately. Vince expects aftertax cash
Vince plans to open a self-serve grooming center in a storefront. The grooming equipment will cost $430,000, to be paid immediately. Vince expects aftertax cash inflows of $93,000 annually for seven years, after which he plans to scrap the equipment and retire to the beaches of Nevis. The first cash inflow occurs at the end of the first year. Assume the required return is 13 percent. What is the projects PI?
What formulas do I put into Excel to get the correct answers? I saw answers to this question on Chegg, but I didn't see any of the formulas to put into Excel to get each years present value.
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