skolenovic7 posted a question
Can I get some help with this...It is tab 5 - capital budgeting. I'm able to understand the rest but my prof, the initial cost of the new refrigeration unit is an outflow, so it would be shown as a negative number. After tax cash flow, annual electricity savings, and additional annual maintenance costs are all yearly, so you will need to use the PVIFA (annuity) table rather than the single sum table. After tax cash flow and annual electricity savings should be positive numbers while the additional annual maintenance costs would represent an outflow (negative). Net present value is the sum of all 5 numbers. With this information, I am lost. Please advise.

Jessica
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  • Guajardo_Project for Students.xlsx Download Attachment

    ACCT 346
    Student Name
    Bravo Baking Company began operations in May of 2010 with the production and sales of specialty breads.
    The company has experienced a good market demand for its high protein,...
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