Your company is preparing to launch a new product over the next 10 years.
The equipment to make this new product will have an initial cost of $154000 to the company.
At the end of the project, you believe you can get $26000 for the equipment as salvage.
Supplies will cost $1800 the first year and go up by $750 each year.
Maintenance costs start at $1510 the first year and will increase by 1.9% each year
The company expects to make $18500 the first year and this will increase by 2.1% each year.
Create the Cash flow table showing these costs and profits and the net cash flow.
If the interest rate is 3.8%, what will be the NPV of the project?
What is the book definition of NPV? Put that definition into your own words. Can someone show this in excel, please?