Question

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Spreadsheet Assignment Use specific functions explained in class (pv. pmt, npc.etc.) to solve the following problems in spreadsheets (use only Microsoft Excel please). Solve each problem in a separate tab in one excel sheet only Save your file with your first and last name (only one file is allowed per student). Do not upload pdf, MS Word, image or Numbers. Only Excel sheets will be counted toward grading. 1. The American University in Kuwait is considering investing a new payroll software system. They anticipated annual training costs of KD 50000 for 4 years. As part of their analysis, AUK wants to know the present and the future values of this cost. Assume that AUK uses an interest rate of 16%. Use spread sheets to answer this question 2. Suppose that KD30,000 is borrowed today at 13% interest. The loan is to be repaid by uniform annual payments for five years, beginning one year from now. Calculate the annual payment using a spreadsheet 3. With a 9% interest rate, find the Net Present Worth for the following cash flows: YearAmount

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Answer 1

Solution and Excel screenshot for formulas used are shown as follows.

(1)

(Question 1)
Annual Cost (PMT) (KD) =	-50,000
Number of Years (NPER) =	4
Interest rate (RATE) =	0.16
Present Value (KD) =	1,39,909.03
Future Value (KD) =	2,53,324.80

(2)

(Question 2) Present Value (PV) (KD) = -30,000 Number of Years (NPER) = 5 Interest rate (RATE) = 0.13 Annual Payment (PMT) (KD) = 8,529.44

(3)

(Question 3)
Year	Cash Flow ($)
0	-55,000.00
1	25,000.00
2	-3,000.00
3	18,000.00
4	30,000.00
Net Present Worth ($) =	562.80

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