Need help with putting this up in an Excel file MARR is 10%. Each year\'s cash o

Question

Need help with putting this up in an Excel file

MARR is 10%. Each year's cash outflow and cash inflow is given. With the help of MARR each year's present value factor of a lump sum is calculated. This factor is then multiplied by the cash inflows or outflows. Receipts and disbursements (means expenditure/outlay) is given To calculate the each year receipts the disbursements is subtracted from it and then multiplied by their NPV rate of 10%. Provide feedback (0) Step 2 of 4 Thus the present worth of these investments calculations is shown below in the table: The amount in brackets shows the cash outflow. Hence, after deducting the negative values from the positive values the present worth comes out to be $342.50

Explanation / Answer

The Excel format & calculated solution as follows.

Note: The slight difference is due to rounding.

Year Receipt ($) Disbursement ($) Net Income ($) Discount factor @10% Discounted Net Income ($) 0 0 1,000 -1,000 1.0000 -1,000.0 1 600 300 300 0.9091 272.7 2 600 300 300 0.8264 247.9 3 700 300 400 0.7513 300.5 4 700 300 400 0.6830 273.2 5 700 300 400 0.6209 248.4 PRESENT WORTH 342.8

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