Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
What is the excel equation to calculate the values in the selected row exactly as they are?

Transcribed Image Text:IS values in thousands)
Development cost
Ramp-up cost
Marketing & support cost
Production cost
Production volume
Unit production cost
Sales revenue
Sales volume
Unit price
Period Cash Flow
PV Year 1, r= 10%
Project NPV
Year 1
Q1
02
03
8,203
04
-1,250 -1,250 -1.250 -1,250
Year 2
Q1
-1,000 -1.000
-250
02
-1,250 -1,250 -1.250 -2.250 -1,250 1,750
-1,250 -1,220 -1,190. -2,089 -1,132 1,547
Q3
04
Year 3
1,750 1,750
1,509 1,472
Q1
02
-250 -250
-250 -250 -250
-250
-2,000 -2.000 -2,000 -2,000 -2,000 -2.000
5,000 5,000 5,000 5,000 5,000 5.000
-0.4 -0.4 -0.4 -0.4 -0.4 -0.4
4,000 4,000 4,000 4,000 4,000
4,000
5,000
5,000 5.000
5,000 5,000
5,000
0.8 0.8 0.8
0.8
0.8
03
04
1,750 1,750 1,750
1,436 1,401 1,367
Year 4
Q1
-250 -250
-2,000 -2,000
5.000 5,000
-0.4 -0.4
4,000 4,000
5,000 $5,000
0.8 0.8 0.8
02 03
04
-250 -250 -250
-2,000
-2,000 -2.000
5,000 5,000 5,000
-0.4 -0.4
4,000 4,000 4,000
5,000 5,000
5,000
0.8 0.8
1,750 1,750 1,750 1,750
1,334 1,301 1,269 1,239
08.
1,750
1,208
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