Question: Answer all parts with full steps and as per the method mentioned to get 100% feedback!! NO EXCEL USE ONLY HANDWRITTEN FORMULAS. A company would

Answer all parts with full steps and as per the method mentioned to get 100% feedback!! NO EXCEL USE ONLY HANDWRITTEN FORMULAS.

A company would like to determine the net present worth of their new project. Table below provides details of the cash flow analysis. Use interest rate of 18% per year.

Year X
Initial Cost $100,500
Operating and Maintenance Cost (Year 1) $35000
Annual increase in O&M Cost 2%
Overhaul Cost in Year 3 $22000
Salvage Value $45000
Useful Lives 6

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