Use the data in the attached excel document to answer the following questions. U
ID: 2613412 • Letter: U
Question
Use the data in the attached excel document to answer the following questions. Use a discount rate of 4%. For questions 7 & 8, round your answer to the nearest whole dollar (example: 5048). For question 9 & 10, round your answer to 2 decimal places (example: 0.84).
What is the total present value of costs?
What is the total present value of benefits?
What is the Net Present Value (NPV) of the project?
Homework 6 Data.xlsx - Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEWVIEWACROBAT SAS Li, Rebecca Calibri ' Wrap Text General Paste Sort &Find; & Filter Select Editing Share Upload B 1 u ·.A. ___ tMerge & Center. $. % , '0848 Conditional Format asCel Insert Delete Format Formatting Table" Styles 00 0 Clipboard Font Alignment Number Styles Cells Box The following table shows the costs and benefits of a proposed project over the next five years. Using a 4% discount rate, calculate the Net Present Value (NPV) and Benefit Cost Ration (BCR) for the project Year Costs Benefits 950 147 2 367 497 856 827 697 Total 3515 3741 26 27 29 30 32 CBA Data | READY + 1009% 11:59 AMExplanation / Answer
present value of cost -$ 3149.39
a)Present value of benefits = $ 3231.62
B)NPV =present value of net cash inflow -present value of cash outflow
= (3231.62 - 3149.39 )
=$ 82.23
c)Benefit cost ratio of project = present value of benefits /present value of cost
= 3231.62 /3149.39
= 1.0261 or 102.61%
year present value @4% cost Present value of cost Benefit present value of benefit 1 .96154 950 913.463 147 141.346 2 .92456 845 781.253 564 521.452 3 .88900 367 326.263 827 735.203 4 .85480 497 424.836 697 595.796 5 .82193 856 703.572 1506 1237.827 Total 3149.39 3231.62Related Questions
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