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

	Present Value of Cash Flow=(Cash Flow)/((1+i)^N)
	i=discount Rate=MARR=7%=0.07, N=Year of Cash Flow
		N	CF	PV=
		Year	Cash Flow	Present worth
		2	$1,000	$873
		3	$1,100	$898
		4	$1,200	$915
		5	$1,300	$927
		6	$1,400	$933
		7	$1,500	$934
		8	$1,600	$931
		9	$1,700	$925
		10	$1,800	$915
		11	$1,900	$903
		12	$2,000	$888
		13	$2,100	$871
		14	$2,200	$853
		15	$2,300	$834
		16	$2,400	$813
		17	$2,500	$791
		18	$2,600	$769
			SUM	$14,974
	To Have Present Worth =Zero
	Present Value of Year 1 Cash Flow	($14,974)
	Year 1 Cash Flow=-14974*1.07=	($16,022)
	TABLE SHOWING CASH FLOW from Year1 to 18
		N	CF	PV=
		Year	Cash Flow	Present worth
		1	($16,022)	($14,974)
		2	$1,000	$873
		3	$1,100	$898
		4	$1,200	$915
		5	$1,300	$927
		6	$1,400	$933
		7	$1,500	$934
		8	$1,600	$931
		9	$1,700	$925
		10	$1,800	$915
		11	$1,900	$903
		12	$2,000	$888
		13	$2,100	$871
		14	$2,200	$853
		15	$2,300	$834
		16	$2,400	$813
		17	$2,500	$791
		18	$2,600	$769
			SUM	$0