Question
You are evaluating a project. A cash flow diagram for the project is provided. Years Initial Cost Salvage Op Costs Benefits Net Cash Flow 0
You are evaluating a project. A cash flow diagram for the project is provided. Years Initial Cost Salvage Op Costs Benefits Net Cash Flow 0 $(271,426) $(271,426) 1 $(45,266) $90,000 $44,734 2 $(84,300) $84,300 $- 0 3 $(17,532) $94,976 $77,444 4 $(44,563) $110,528 $65,965 5 $(36,423) $112,444 $76,021 6 $(55,278) $122,240 $66,962 7 $(34,219) $108,742 $74,523 8 $(68,019) $132,819 $64,800 9 $31,105 $(32,583) $144,244 $142,766
Year | Initial Cost | Salvage | Op Cost | Benefits | Net Cash Flow |
0 | ($271,426) | ($271,426) | |||
1 | ($45,266) | $90,000 | $44,734 | ||
2 | ($84,300) | $84,300 | $0 | ||
3 | ($17,532) | $94,976 | $77,444 | ||
4 | ($44,563) | $110,528 | $65,965 | ||
5 | ($36,423) | $112,444 | $76,021 | ||
6 | ($55,278) | $122,240 | $66,962 | ||
7 | ($34,219) | $108,742 | $74,523 | ||
8 | ($68,019) | $132,819 | $64,800 | ||
9 | $31,105 | ($32,583) | $144,244 | $142,766 |
Use a MARR of 15%
3a. Determine the NPW
3b. Determine the AW
3c. Determine the FW
3d. Deterine the IRR
3e. Graph the NPW versus MARR
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