Investment:	$1,000,000				Assignment: fill in this spreadsheet. Is this a
			Cost of Capital:	12.00%				good investment if your cost of capital is 10%?
			Salvage Value at the end of 10 years:	30.00%	of original investment			How can you tell? What if your cost of capital
		Cash		P.V.	P.V.			is 12.5%?
	Year	Flow		Factor**	Amount
	1	$40,000
	2	$100,000
	3	$120,000
	4	$170,000
	5	$225,000
	6	$225,000
	7	$225,000
	8	$225,000
	9	$200,000
	10		**			** The cash flow in year 10 consists the year's expected
						benefit of $180,000 plus the salvage value of the
	SUM			SUM		investment, which is the original investment times the
				NPV		expected percent of remaining value given in Cell E3.
				Calculate the N.P.V. here.
				Type your answers here: