Question: please use excel to solve this. Also please show the formulas used. Question 1 (25 points): Investment in an asset is expected to yield the
please use excel to solve this. Also please show the formulas used.
Question 1 (25 points): Investment in an asset is expected to yield the following cash flow with a resale (salvage) value of $20,000 at the end of the 10th year. Investment in this asset is evenly split between present time, year 1, and year 2 (the investment cost, C, has the same numerical value for the present time, year 1, and year 2). What is the present value of C for break even considering a discount rate of 12.5% compounded annually? This question requires a timeline. C=? I=5000 1=4,000 1=4,000 L=$20,000 C=? I=8,000 1=8,000 156.000 1=6,000 155,00 5 6 7 C: Cost. I: Income, L: Salvage Value 0 1 2 3 4 8 9 10
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