Calculate the pw value for interest rates in the given range

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In 2011, Vaught Industries closed its plant in Marionsville following labor, environmental, and safety problems. The plant was built in 2005 based on an older technology to produce meat products. It had positive NCF until 2010 and discontinued operation in 2011 due to labor and safety problems. In 2012, prior to the sale of the facility and property, Vaught spent $1 million to make the site environmentally acceptable to a potential buyer. The net cash flows in $100,000 over the years are listed below. Use a spreadsheet to do the following.

(a) Check for multiple rates of return.

(b) Find all rates that are real numbers between _25% and _50%, and calculate the PW value for interest rates in this range.

(c) Indicate which is the best and correct i * value to use in a PW analysis.

Year

2005

2006

2007

2008

2009

2010

2011

2012

NCF, $

-25

+10

+10

+15

+15

-5

-6

-10

Reference no: EM13881836

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