please explain how to use the PV formula on the dicount factor cells. as well as B38
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please explain how to use the PV formula on the dicount factor cells. as well as B38
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Required investment in equipment 5 Project life 7 8 6 Salvage value The project would provide net operating income each year as follows: 9 Sales 10 Variable expenses 11 Contribution margin 12 Fixed expenses: 13 Salaries, rent and other fixed out-of pocket costs 14 Depreciation 15 Total fixed expenses 16 Net operating income 17 18 Company discount rate $2,205,000 7 225,000 $2,750,000 1,600,000 $1,150,000 $520,000 350,000 870,000 $280,000 18% Required investment in equipment 5 Project life 7 8 6 Salvage value The project would provide net operating income each year as follows: 9 Sales 10 Variable expenses 11 Contribution margin 12 Fixed expenses: 13 Salaries, rent and other fixed out-of pocket costs 14 Depreciation 15 Total fixed expenses 16 Net operating income 17 18 Company discount rate $2,205,000 7 225,000 $2,750,000 1,600,000 $1,150,000 $520,000 350,000 870,000 $280,000 18%
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