John has a new project with projected real cash flows of $12,200, $14,600, and $16,300 for Years 1 to 3, respectively. T

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

John has a new project with projected real cash flows of $12,200, $14,600, and $16,300 for Years 1 to 3, respectively. T

Post by answerhappygod »

John has a new project with projected real cash flows of$12,200, $14,600, and $16,300 for Years 1 to 3, respectively. Thenominal discount rate is 15.96 percent and the inflation rate is 4percent. What is the net present value of the project if theinitial cost is $26,000? A- 9508.70, B- 8444.15, C- 8946.68, D-9248.74, E- 9711.64
Sara's initial cost of one customized machine is $650,000with an annual operating cost of $14,800, and a life of 4 years.The machine will be worthless and replaced at the end of its life.What is the equivalent annual cost of this machine if the requiredrate of return is 14.5 percent and we ignore taxes anddepreciation? A- 240,008.02, B- $240,173.77, C- $251,610.29, D-$247,647.78, E- $249,797.41
Can you please show me in detail how to do these in excel so Ican better understand.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply