Question

Using Microsoft Excel, create an investment cash-flow diagram that will have a present worth of zero at MARR = 7%. The study period needs to be exactly 18 years and each year should have at least one unique cash-flow that is different from the cash-flows over the other years. Your answer should contain a table showing the cash-flows for each year and a graphical representation of the cash-flows (cash-flow diagram).

Answer 1

Assume the initial cash out flow in this case i assume 50000 as cash out flow and divide this initial outflow by 18 Years to get each year cash inflow Present value.

From 1st years onward increase the cash inflow by (1+7%) upto 18 years

For cash inflow for nth years = (50000/18)*(1+7%)^n

Year	cash flow
0	-50000.00
1	2972.22
2	3180.28
3	3402.90
4	3641.10
5	3895.98
6	4168.70
7	4460.50
8	4772.74
9	5106.83
10	5464.31
11	5846.81
12	6256.09
13	6694.01
14	7162.59
15	7663.98
16	8200.45
17	8774.49
18	9388.70