Question: Please show work using excel. Problem 3 Create a CASH Flow chart and answer the following questions. The equipment will cost $620,000 and lasts the
Please show work using excel.
| Problem 3 | ||||
| Create a CASH Flow chart and answer the following questions. | ||||
| The equipment will cost $620,000 and lasts the entire 11 year project. | ||||
| At the end of 11 years, the equipment will be sold for $91,000 in salvage. | ||||
| Operating costs start at $108000 and go up by 3.9% every tear. | ||||
| Benefits begin at $190000 and go up by 6.1% every year. | ||||
| The MARR value is 14% | ||||
| Use a MARR of 14% | BUILD the CASH FLOW chart for this project. | |||
| 3a. Determine the NPW | ||||
| 3b. Determine the AW | ||||
| 3c. Determine the FW | ||||
| 3d. Deterine the IRR | ||||
| 3e. Graph the NPW versus MARR | ||||
| 3f. Are we making or losing money at 14% MARR? | ||||
| How can you tell? | ||||
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