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< Back to Assignment Attempts: 0 Keep the Highest: 0/12 8. Problem 12.08 (New Project Analysis) eBook You must evaluate the p

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Answer #1

1.
=180000+12000
=192000

2.
=(23000-180000/3)*(1-25%)+180000/3
=32250

3.
=(23000-180000/3)*(1-25%)+180000/3
=32250

4.
=(23000-180000/3)*(1-25%)+180000/3+12000+85000*(1-25%)
=108000

5.
No dont purchase as NPV is negative
NPV=-(180000+12000)+((23000-180000/3)*(1-25%)+180000/3)/11%*(1-1/1.11^3)+12000/1.11^3+85000*(1-25%)/1.11^3
=-57802.45329

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