# Accounting Excel Homework

12 hrs due

10/10 1pm PT timezone

## Sheet1

 Alt A Alt B Alt C Alt D Year Cash flow P A S Row Total P A S Row Total P A S Row Total 0 0 -50000 -50000 -95000 -95000 -350000 -350000 1 0 5100 5100 10500 10500 36000 36000 2 0 5100 5100 10500 10500 36000 36000 3 0 5100 5100 10500 10500 36000 36000 4 0 5100 5100 10500 10500 36000 36000 5 0 5100 5100 10500 10500 36000 36000 6 0 5100 5100 10500 10500 36000 36000 7 0 5100 5100 10500 10500 36000 36000 8 0 5100 5100 10500 10500 36000 36000 9 0 5100 5100 10500 10500 36000 36000 10 0 5100 5100 10500 10500 36000 36000 11 0 5100 5100 10500 10500 36000 36000 12 0 5100 5100 10500 10500 36000 36000 13 0 5100 5100 10500 10500 36000 36000 14 0 5100 5100 10500 10500 36000 36000 15 0 5100 5100 10500 10500 36000 36000 16 0 5100 5100 10500 10500 36000 36000 17 0 5100 5100 10500 10500 36000 36000 18 0 5100 5100 10500 10500 36000 36000 19 0 5100 5100 10500 10500 36000 36000 20 0 5100 30000 35100 10500 30000 40500 36000 150000 186000 NPW 0 (\$2,121.52) (\$1,148.27) (\$21,215.16) (\$1,148.27)
Use the NPV function in EXCEL to find the NPW of all but year 0. Then subtract the initial investment to get NPW as we know it: =NPV(0.1,G4:G23)+G3 Notice that this value is negative, so the alternative is undesirable
Alternative A (the “Do nothing” alternative) had the only NPW greater than or equal to zero, so it is the preferred alternative for this problem.
Use the summation function in the menu bar (Greek letter capital sigma) to get the row total. Then drag the cell corner to extend it to the entire column.
Since this is a benefit, the sign for the uniform series is positive. If these were costs, the sign would be negative.
The Salvage value is a Future Value (F or FV).
Note simpler approach using PV function and including the payment and salvage values for pmt and fv: -95000 – PV(0.1,20,10500,30000)

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