Formulas used
TOTAL INITIAL COST =SUM(C9:C11)
Depriciation =(C9+C10-C14)/C13
Tax =C21*0.4
Year - 3 total ( operating+ non operating flow) = C25+C29
NPV =(0.12,C32:C34)-C12
ANSWERS
(a) 178,000 ref. Cell no C12
(b) 44666.67 ref. Cell no. C25
(c) 68000 ref. Cell no. C29
(d) No spectrometer should not be purchase because present value of benefits is less than present vaule of cost incurred for spectrometer. Here NPV (ref. Cell no. C35) is negative so spectrometer should not be purchase.
I hope my efforts will be fruitful to you...?
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