Your friend is studying the feasibility for opening a new company. He / She provides you with the below table indicating the costs and the benefits for the system on 4 years, with a discount factor of 11%. Calculate the Present Value (PV) for each year and fill the table. Given the formula to calculate the PV: PV. = 1/(1 + ir where n is the number of years and i is the discount rate. Calculate the NET Present Value Year Discount factor 11% Development (S50,000.00) costs Operation Costs (S30,000.00) (S60,000.00) (S90,000.00) (S100,000.00) Present value Costs Total Present Value of lifetime costs Annual benefits S100,000.00 $0.00 $90,000.00 $125,000.00 S170,000.00 Present value benefits Total Present value of lifetime benefits Total Present value of lifetime
Your friend is studying the feasibility for opening a new company. He / She provides you with the below table indicating the costs and the benefits for the system on 4 years, with a discount factor of 11%. Calculate the Present Value (PV) for each year and fill the table. Given the formula to calculate the PV: PV. = 1/(1 + ir where n is the number of years and i is the discount rate. Calculate the NET Present Value Year Discount factor 11% Development (S50,000.00) costs Operation Costs (S30,000.00) (S60,000.00) (S90,000.00) (S100,000.00) Present value Costs Total Present Value of lifetime costs Annual benefits S100,000.00 $0.00 $90,000.00 $125,000.00 S170,000.00 Present value benefits Total Present value of lifetime benefits Total Present value of lifetime
Chapter3: Performing Calculations With Formulas And Functions
Section: Chapter Questions
Problem 8RA
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