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

To formulate the table take any cash flow from year 1-18 and calculate the present value of all there cash flows at year 0, now take this present value as outflow in year 0 so that we have present value worth of zero at MARR 7%

Year	Cash Flow	PV @7%
0	-13440.2	-13,440.18
1	1000	934.58
2	1050	917.11
3	1100	897.93
4	1150	877.33
5	1200	855.58
6	1250	832.93
7	1300	809.57
8	1350	785.71
9	1400	761.51
10	1450	737.11
11	1500	712.64
12	1550	688.22
13	1600	663.94
14	1650	639.90
15	1700	616.16
16	1750	592.79
17	1800	569.83
18	1850	547.35
	Present Value worth	0.00