PLEASE WRITE OUT EVERY FORMULA IN EXCEL FORMAT Acquire a Supplier Purchase Latest Model of Equipment Bascilla, Incorporated is trying to determine the value of several projects. Currently there are four being examined:

Project Automation Hire Extra Crew Acquire a Supplier Purchase Latest Model of Equipment

Initial Cost $ $650,000$ $ $91,000$ $ $1,200,000$ $ $435,000$

Salvage Value $ $90,000$ N$/$A N$/$A $ $133,000$

Annual Increase to Net Income $ $64,000$ $ $17,000$ $ $46,000$ $ $48,000$

Project Life $($years$)1015208$

Hurdle Rate $12\%$

Automation requires a working capital amount to begin which will be released at year $10.$ $ $25,000$

The equipment will require a major repair at year $4.$ $ $48,000$

Required:

Compute the Net Present Value of each project.

Examine the Internal Rate of Return for each project.

Compute the Profitability Index for all projects.

Use the PV$()$ function to determine the TVM factors. Be sure to put a $"-$hyphen" sign before the function and for cash out flows, and use $"1"$ as the PMT and FV amounts as necessary.

Navigation:

Use the Open Excel in New Tab button to launch this question.

When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.