Different cash flows could be entered easily into the model

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Reference no: EM131621214

Your firm made a capital investment of $100,000 dollars in year zero. In each of the following six years, the investment is expected to generate after tax positive cash flows of $30,000. In year three, the project will require a $10,000 overhaul. When the project is ended in year six, there will be a clean-up cost of $15,000 and the equipment will have a salvage value of $10,000. 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 submission should include the ready to use model in addition to a tab demonstrating the model. 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

Reference no: EM131621214

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