Question: help needed with excel cash flow E A B 1 You have been hired as an analyst at ABC company and asked to calculate 2
E A B 1 You have been hired as an analyst at ABC company and asked to calculate 2 the financial feasibility of the following project. 3 ABC Company invests $250,000 in new machinery. They are expected to receive 4 net annual cash flows of $35,000 for 10 years with an interest rate of 8%.. 5 6 1) Calculate PV of Cash Flows? 7 2) Calculate NPV of Investment and decide if it would be a good investment? 8 3) What other considerations should an analyst take into consideration other than just financial impact? 10 Capital Investment 11 Net Annual Cash Flows 12 Annuity Payments 13 Intererst Rate 14 Table Factor 15 1) Calculate Present Value 16 1) Calculate Using Financial Calculator 17 2) Calculate Using MS Excel 18 19 2) Calculate NPV 20 Present Value of Net Annual Cash Flows 21 less Capital Investment 22 Net Present Value (NPV) 23 24 25 3) What other considerations should be looked at before investing
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