For the MPV using the excel, is this the correct formula? New Time Period Cash Flows 8% Discount Rate Present Value Equipment purchase 0 (200,000) 1 (200,000) Salvage value of old equip 0 42,000 1 42,000 Net cash flow 8 43,900 5.74664 252,277 Salvage value 8 90,000 0.54027 48,624 Net present value

=142,902 (New)

Old Time Period Cash Flows 8% Present Value Overhaul cost 1 (55,000) 0.92593 (50,926) Net cash flow 8 30,425 5.74664 174,842 Salvage value 8 15,000 0.54027 8,104 Net present value

= 132,019 (old)