Homework SourseQ1 what is the annualized cost of the DCI cars Year LRP DSI
Q1: what is the annualized cost of the DCI cars ?
Year LRP DSI 0 $275,000 $195,000 1$10,000 1 $10,000 15,000 2 $10,000$15,000 3 $10,000 $15,000 4 $10,000 $15,000 5 $10,000 $15,000 6$10,000 $15,000 7 $10,000 8 $10,000 $10.000 $10,000 10 iventhis. i nformation answer questions 46 Solution
PV = 264,343.19, FV = 0, rate = 8%, N = 6
use PMT function in Excel
annualized cost = 57,181.50
| Discount rate | 8.0000% | ||
| Cash flows | Year | Discounted CF= cash flows/(1+rate)^year | Cumulative cash flow |
| 195,000.00 | 0 | 195,000.00 | 195,000.00 |
| 15,000.000 | 1 | 13,888.89 | 208,888.89 |
| 15,000.000 | 2 | 12,860.08 | 221,748.97 |
| 15,000.000 | 3 | 11,907.48 | 233,656.45 |
| 15,000.000 | 4 | 11,025.45 | 244,681.90 |
| 15,000.000 | 5 | 10,208.75 | 254,890.65 |
| 15,000.000 | 6 | 9,452.54 | 264,343.19 |
