Exhibit 2: Project Cash Flow Data Investment-related cash flow forecasts: Invoice price of the machinery = $500,000 Shipping charges = $35,000 Installation cost = $10,000 Depreciable basis = $545,000 Salvage value = $95,000 Investment in net working capital = 20% of next year's sales %3D %3D MACRS depreciation rates: Year 1: 0.3333 Year 2: 0.4445 Year 3: 0.1481 Year 4: 0.0741 Operating cash flow forecasts: Project's economic life = 4 years Year 1 unit sales = 3,200 units Unit growth = 4% Year 1 price per unit = $250.00/unit Year 1 cost per unit = $185.00/unit %3D %3D Inflation rate = 2.5% %3D

Q: 2. Compute the equivalent future and present worth for the cash flow in the following diagram with…

A: As per our policy, we can only provide the answer to one question. Please repost the other question…

Q: Determine the PW (Present Worth) at 7% and at 8% of the given cash-flow diagram. Use MS Excel

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A: Future value or CF = PV x (1+i)^twherePV = Present valuei = rate of interestt = time = 1 year

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A: Net present  value  = Present value of  cash inflows  - initial  investment

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A: Net Present Value (NPV) or Net Present Worth (NPW)  It is the present value of future cash flows…

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A: The (PV) present value of an investment project's projected net cash flows is called NPV.

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A:

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A: This pertains to capital budgeting. In capital budgeting we appraise a project to determine whether…

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