Question

9-59 Two equipment investments are estimated as follows: Year A 0 -$15,000 $18,000 5,000 6,500 5,000 6,500 5,000 6,500 5,000

please show excel formulas so I can understand the problem

thanks

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Using NPER function in Excel

year Cash Flow A Cash Flow B
0 -15000 -18000
1 5000 6500
2 5000 6500
3 5000 6500
4 5000 6500
5 5000 6500
6 5000 6500
Payback 4.16 3.74

As Payback is less in case of B, it should be selected

Showing formula in excel

year Cash Flow A Cash Flow B
0 -15000 -18000
1 5000 6500
2 5000 6500
3 5000 6500
4 5000 6500
5 5000 6500
6 5000 6500
Payback =NPER(14%,B148,B142) =NPER(14%,C148,C142)
Add a comment
Know the answer?
Add Answer to:
please show excel formulas so I can understand the problem thanks 9-59 Two equipment investments are...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT