can you solve it
by using ExcelHomework Answers
using NPV function in Excel
| Year | Investment | Maint Cost | Salvage value | Net cash Flow | Investment | Revenue | Salvage value | Net cash Flow |
| 0 | -45000 | -45000 | -58000 | -58000 | ||||
| 1 | -8000 | -8000 | -4000 | -4000 | ||||
| 2 | -8000 | -8000 | -4000 | -4000 | ||||
| 3 | -8000 | -8000 | -4000 | -4000 | ||||
| 4 | -8000 | -8000 | -4000 | -4000 | ||||
| 5 | -8000 | 2000 | -6000 | -4000 | 12000 | 8000 | ||
| NPW | -72703.4 | -65610.0 | ||||||
As net present cost of Y is less it should be selected
Showing formula in excel
| Year | Investment | Maint Cost | Salvage value | Net cash Flow | Investment | Revenue | Salvage value | Net cash Flow |
| 0 | -45000 | =P3+Q3+R3 | -58000 | =T3+U3+V3 | ||||
| 1 | -8000 | =P4+Q4+R4 | -4000 | =T4+U4+V4 | ||||
| 2 | -8000 | =P5+Q5+R5 | -4000 | =T5+U5+V5 | ||||
| 3 | -8000 | =P6+Q6+R6 | -4000 | =T6+U6+V6 | ||||
| 4 | -8000 | =P7+Q7+R7 | -4000 | =T7+U7+V7 | ||||
| 5 | -8000 | 2000 | =P8+Q8+R8 | -4000 | 12000 | =T8+U8+V8 | ||
| NPW | =NPV(12%,S4:S8)+S3 | =NPV(12%,W4:W8)+W3 | ||||||
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can you solve it
by using Excel
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