The municipal golf course has made a budget request to remodel and upgrade the clubhouse. The project will cost $7,200,000, based on reliable estimates. The additional annual operating expenses after the upgrade are expected to be $200,000 per year. An analysis of the experiences of other municipal golf courses reveals an expected revenue increase of $1 million per year after the upgrade. The useful life of the upgraded clubhouse is estimated at 9 years, and the golf course expects to get a loan for the renovations at an interest rate of 4.25%. Should the renovations be approved? I need the answer to the cell highlighted in pink. The formula in excel please

Year	Cash Out	Cash In	Net Cash Flow	Present Value
0	$    (7,200,000.00)	$                        -	$ (7,200,000.00)	$ (7,200,000.00)
1	$       (200,000.00)	$ 1,000,000.00	$       800,000.00	$       767,386.09
2	$       (200,000.00)	$ 1,000,000.00	$       800,000.00	$       736,101.77
3	$       (200,000.00)	$ 1,000,000.00	$       800,000.00	$       706,092.82
4	$       (200,000.00)	$ 1,000,000.00	$       800,000.00	$       677,307.26
5	$       (200,000.00)	$ 1,000,000.00	$       800,000.00	$       649,695.22
6	$       (200,000.00)	$ 1,000,000.00	$       800,000.00	$       623,208.84
7	$       (200,000.00)	$ 1,000,000.00	$       800,000.00	$       597,802.24
8	$       (200,000.00)	$ 1,000,000.00	$       800,000.00	$       573,431.41
9	$       (200,000.00)	$ 1,000,000.00	$       800,000.00	$       550,054.11
			$                         -	$ (1,318,920.24)
Rate	4.25%
Excel f(x)			Yes	No
Should the renovations be approved?				x

Answer rating: 100% (QA)

To determine whether the renovations should be approved we need to calculate the net present value N... View the full answer