Construct an Excel spreadsheet to answer the questions in Problem 8-39 as given below: 8-39 Calculating NPV
Fantastic news! We've Found the answer you've been seeking!
Question:
Construct an Excel spreadsheet to answer the questions in Problem 8-39 as given below: 8-39
Calculating NPV and IRR Using Excel. Mountain Hardware would like to expand into a new warehouse at a cost of $500,000. The warehouse is expected to have a life of 20 years, and a salvage value of $100,000. Annual costs for maintenance, insurance, and other cash expenses will total $60,000. Annual net cash receipts resulting from this expansion are predicted to be $115,000. The company's required rate of return is 12 percent Required:
a. Use Excel to calculate the net present value and internal rate of return in a format similar to the Computer Application spreadsheet shown in the chapter.
b. Should the company purchase the warehouse? Explain.
Related Book For
Posted Date: