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Evaluate these projects at discount rate

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Reference no: EM131997734

Construct a simple table for the following problem in Excel.

Your company, TurkeyFilet, is considering these 3 mutually exclusive projects, each having an initial outlay of $400,000.

Project A has operating savings of $50,000 per year for 7 years and a salvage value of $100,000.

Project B has opeating savings of $100,000 per year for 6 years, less added overhead costs of $40,000 per year for the 1st 3 years, and a salvage value of $150,000.

Project C has operating savings of $60,000 per year for 10 years and a salvage value of $50,000.

Evaluate these projects at a discount rate of 10%.

If the discount rate for projects falls to 8%, does your answer change?

Reference no: EM131997734

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