Question: If excel is used, please give equations, will rate! Consider the financial data for a project in the following table. The annual revenue and annual

 If excel is used, please give equations, will rate! Consider the

If excel is used, please give equations, will rate!

Consider the financial data for a project in the following table. The annual revenue and annual expenses occur at the end of years 1 through 7 and the salvage value is recouped at the end of the 7 years. What is the i* for this project? If the annual expenses increased at an 8% rate each year compared to the previous year's expenses, but the annual revenue is unchanged, what is the new i*? Assume the annual revenue increases but remains constant for each of the 7 years. Assuming the annual expenses increase at the same rate as in part (b), what does the new annual revenue need to be in order to maintain the same i* as in part (a)? Use Excel to calculate IRR for both cash flows, and then use a guess-and-check method or "Goal Seek" to find the annual revenue

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