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# 1. The benefits and costs of an investment project (the purchase of a piece of machinery) are those given in the following table. In Excel, calculate...

1. The benefits and costs of an investment project (the purchase of a piece of machinery) are those given in the following table. In Excel, calculate net revenue, or the revenue from the investment minus the costs; the present value coefficient for every year; and the present value of the net revenue. Add together column F to get the net present value of the project. Should the firm purchase the machine?

End of Year Investment
(Year 0) and cost Revenue Net Revenue Present Value Coefficient
1/(1+0.5)n Present Value of Net revenue
0 \$1000 ------
1 \$200 \$600
2 \$300 \$800
3 \$300 \$800
4 \$400 \$800
4 ---- \$200*

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1. The benefits and costs of an investment project (the purchase of a piece of machinery) are those given in the following table. In Excel, calculate net revenue, or the revenue from the investment minus the costs; the present value coefficient for every year; and the present value of the net revenue. Add together column F to get the net present value of the project. Should the firm purchase the machine? End of Year Investment (Year 0) and cost Revenue Net Revenue Present Value Coefficient 1/(1+0.5) n Present Value of Net revenue 0 \$1000 ------ 1 \$200 \$600 2 \$300 \$800 3 \$300 \$800 4 \$400 \$800 4 ---- \$200*

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1. The benefits and costs of an investment project (the purchase of a piece of machinery)
are those given in the following table. In Excel, calculate net revenue, or the revenue
from the investment...

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