Question

Exercise 6.8: The plant manager of manard Services has received five projects from his managers.
He uses a MARR of 9% to make project decisions. Find NPW, NFW, and EUAQ for the projects.
Year	Project U	Project V	Project W	Project X	Project Y
0	($211,345)	($6,000)	($425,000)	($578,000)	($821,000)
1	$5,000	$1,500	$5,000	$85,000	$85,000
2	$8,800	$16,500	$13,800	$234,600	$85,000
3	$15,488	$18,150	$38,088	$647,496	$234,600
4	$27,259	$19,865	$44,182	$751,095	$272,136
5	$47,976	$21,862	$51,251	$871,271	$315,678
6	$84,437		($59,451)	($1,010,674)	($366,186)
7	$148,609		$604,026	($1,172,382)	$424,776
8	$261,552		$96,644		$492,740

Answer 1

NOTE:
FORMULA in excel
NPW (NET PRESENT WORTH) = npv(rate,cashflow1, cashflow2,....) + initial investment
NFW (NET FUTURE WORTH)= NPW* (1+ rate)^time period
EUAQ (Equivalent Uniform Annual Worth)= pmt(rate, time period, - NPW)
Here rate= MARR=9%
time period = time period of cashflows for each project

for example time period for project U is 8, project V is 5 and so on.