![, Amelia works for a company that is looking pur a small IT firm called Innovative Tech. She asked to calculate the value of Innovative Tech, which is expected to have total revenues of $340,000 to pur expected to become obsolete and, thus, shut down. Assuming a 5 percent discount rate, set up a table in as xcel showing nominal and discounted total reve- nues, total costs, and profits in each of the eight years. What is the present value of the Innovative Tech? ecreasing by Try to use NPV function in Excel to confirm n ots of $150,000 in the next year. Revenues What is the present value of the Innovative of this firm are expected to start by $20,000 every year, with costs increasing by $5,000 year. After eight years, Innovative Tech is your result.] InnovativeTech Years Nominal Total Revenues 5 Nominal Total Costs 6 Discounted Total Revenues 7Discounted Totel Costs 9 Nominal Profit 0 Discounted Profit 12 13 S0.00 Discount Rate 5% NPV =NPV( )](http://img.homeworklib.com/questions/143da620-72d0-11ea-8443-51f7f18656cb.png?x-oss-process=image/resize,w_560)
Homework Answers
First of all required to feel the values in the first two rows then discounted values in the next two rows. Lastly TR - TC = profit
Refer the attached picture below
Sorry for the image I cannot attach excel so I have taken screen shot please contact if having any query. Thank you.
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