Your company is preparing to launch a new product over the next 10 years.
The equipment to make this new product will have an initial cost of $154000 to the company.
At the end of the project, you believe you can get $26000 for the equipment as salvage.
Supplies will cost $1800 the first year and go up by $750 each year.
Maintenance costs start at $1510 the first year and will increase by 1.9% each year
The company expects to make $18500 the first year and this will increase by 2.1% each year.
Create the Cash flow table showing these costs and profits and the net cash flow.
If the interest rate is 3.8%, what will be the NPV of the project?
What is the book definition of NPV? Put that definition into your own words. Can someone show this in excel, please?

Answer rating: 100% (QA)

Refer below for the required Cash flow table which includes all the cost profit and the Net Cash flo... View the full answer