Hi Experts- Can I get some help with question 5. Please answer in a concise and detail way? I would like to see how the salvage value are used. If you can use excel showing the formulas that would help also. It would be greatly appreciated,

Thank you all in advance!

4. A project has been selected for implementation. The net cash flow (NCF) profile associated with the project is shown below. MARR is 10 percent/year EOY NCF -$70,000 S30,000 $30,000 $30,000 $30,000 $30,000 $30,000+$2,000 a. What is the annual worth of this investment? b. What is the decision rule for judging the attractiveness of investments based on annual worth? c. Is the project economically justified? 5. Reconsider the data from Problem 4. Management has expressed some concern over the life of the project and the impact of possible early termination. As a result, you have developed additional data based on three possible salvage value scenarios. In each case, the possible salvage values progress from $70,000 at EOY 0 to $2,000 at EOY 6. Case 1 is based on a schedule provided by the vendor as shown below. Case 2 is based on a gradient series decline. Case 3 is based on a geometric series decline EOY NCF Vendor SV $70,000 $50,000 S30,000 $20,000$10,000 $5,000 $2,000 70,000 $30,000 S30,000 S30,000 $30,000S30,000 S30,000 332 CHAPTER 7 ANNUAL WORTH a. Determine the salvage decline rate for the gradient case. b. Determine the salvage value decline rate for the geometric case. c. Determine the annual worth for each case for each planning horizon from 1 to 6 by 1 d. Plot a graph similar to Figure 7.1 depicting your results from c