Question: PLEASE SOLVE USING EXCEL. PLEASE ONLY USE EQUATIONS IN EXCEL FOR EACH CELL. THEN SHOW EQUATIONS. THANK YOU THANK YOU THANK YOU Your company is
PLEASE SOLVE USING EXCEL. PLEASE ONLY USE EQUATIONS IN EXCEL FOR EACH CELL.
THEN SHOW EQUATIONS. THANK YOU THANK YOU THANK YOU
Your company is planning to invest in a new equipment that will cost $180,000 and is expected to provide the following savings over its 7- year life:
| Year | Savings Estimate |
| 1 | $58,000 |
| 2 | $49,000 |
| 3 | $30,000 |
| 4 | $28,000 |
| 5 | $24,000 |
| 6 | $19,000 |
| 7 | $12,000 |
1) Suppose that the interest rate is 10%. Calculate NPV and evaluate whether the company should invest in the new equipment.
2) What is the internal rate of return (IRR) associated with the new equipment?
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