My main question is solving the last colum regarding PV How do I figure out PV o
ID: 2644828 • Letter: M
Question
My main question is solving the last colum regarding PV
How do I figure out PV on Excel or in general.
What I have been trying on excel =PV(.15,1,-260,000)
.15 the rate
1 - the first year
-260,000 - the cumulative costs
Really lost in figuring out the last column.
Help!
ALSO:
WHAT IS THE ROI?
WHAT IS THE NPV OF THE PROJECT IN DOLLARS?
PV= 1/(1+0.15)^Year 0 $260,000 $0 $260,000 $0 (260,000) 1 ($260,000) 1 7,000 42,000 2 9,400 78,000 3 11,000 82,000 4 14,000 115,000 5 15,000 120,000 6 25,000 140,000 Total
Explanation / Answer
Year Estimated Estimated Cumulative Cumulative Benefits - PV Factor NPV ($) Costs Net Benefits Costs Benefits Costs at 15% 0 260000 0 260000 0 -260000 1 -260000 1 7000 42000 267000 42000 35000 0.869565 30434.78 2 9400 78000 276400 120000 68600 0.756144 51871.46 3 11000 82000 287400 202000 71000 0.657516 46683.65 4 14000 115000 301400 317000 101000 0.571753 57747.08 5 15000 120000 316400 437000 105000 0.497177 52203.56 6 25000 140000 341400 577000 115000 0.432328 49717.67 NPV 28658.2 ROI = NPV Total Outflow ROI = 28658.2 341400 ROI = 0.08394318 ROI = 8.39%
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