Question: Create a CASH Flow chart and answer the following questions. The equipment will cost $620,000 and lasts the entire 11-year project. At the end of

Create a CASH Flow chart and answer the following questions.

The equipment will cost $620,000 and lasts the entire 11-year project.

At the end of 11 years, the equipment will be sold for $91,000 in salvage.

Operating costs start at $108000 and go up by 3.9% every tear.

Benefits begin at $190000 and go up by 6.1% every year.

The MARR value is 14%

Use a MARR of 14% BUILD the CASH FLOW chart for this project.

a. Determine the NPW

b. Determine the AW

c. Determine the FW

d. Determine the IRR

e. Graph the NPW versus MARR

f. Are we making or losing money at 14% MARR?

How can you tell?

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