I have the answer for this problem but I need to solve it using Excel's PV...

I have the answer for this problem but I need to solve it using Excel's PV function for both products and I cannot seem to figure it out. What would I insert for each portion of the equation into excel?

It has been answered on another question as number 2.

http://www.chegg.com/homework-help/questions-and-answers/lou-barlow-divisional-manager-sage-company-opportunity-manufacture-sell-one-two-new-produc-q12342389?trackid=297667da&strackid=464d9914&ii=8

Expert Solution

Calculation of Annual Cash Inflow:

	Product A	Product B
Sales Revenue	2,50,000	3,50,000
Variable Expense	1,20,000	1,70,000
Fixed Out-of-Pocket expense	70,000	50,000
	60,000	1,30,000

Calculated Through PV function	1,96,458	4,25,658
Initial Investment	1,70,000	3,80,000
NPV	26,458	45,658

ekkarill92 answered 1 year ago

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