Using the Cash Flow Diagrams below, alter your spreadsheet so it will generate two cash flow diagrams. The other cash flow diagram should generate the PW/PV of the cash flows. In the solution, generate an additional cash flow diagram showing the PW of each cash flow on each of the bars of the cash flow diagram.

Your spreadsheet should become more generic so different cash flows could be entered easily into the model (i.e., annual cash flows only need to be entered once but each year the cash flow occurs should be populated).

Your model should provide the diagram as discussed and the NPV of the modeled cash flows.

A B D E F. 1 Year Capital Costs O&M Overhaul -80,000 2 3 0 1 4 2. 5 3 - 25,000 - 12,000 - 12,000 - 12,000 - 12,000 -12,000 - 12,000 6 7 4 5 8 6 10,000 9 10 11 12 13 14 15 16 Cash Flows (thousands) $10 $0 -$10 -$20 -$30 - $40 - $50 - $60 -$70 -$80 17 18 Capital costs O&M Overhaul 19 20 0 1 2 4 5 6 3 Year 21 22 Initial Cost $100,000 Annual Cash Flows $30,000 Year 3 Overhaul $10,000 Year 6 Clean-up Costs $15,000 Equipment Salvage Value $10,000 r (not provided in Module 2) 0.10