Purchase Solution

Calculating the NPV

Not what you're looking for?

Ask Custom Question

Please see the attached file for the full problem instructions.
All formulas used need to be in excel so that when the cell is highlighted, the formula used can be seen.

The nonprofit Center for Original Oxygen (CO2) has decided to concentrate its efforts to a particular means of reducing carbon dioxide thereby enabling a return to the original proportion of oxygen in the environment. Several alternatives have been researched and the cost and benefits have been determined. They have determined that a good representative measure (surrogate) of benefits is the expected cost savings from lower expenditures on respiratory disease medical expenses. The next step is to evaluate alternative methods of reducing carbon dioxide and choose one to support. The data below has been gathered to assist in a choice. (Data are completely fictitious)
Perform a financial analysis for CO2 to determine which one should be chosen from a financial perspective.
Time span 10 years
MARR 7%

Investment Annual Gross Benefits Annual Cost of Operations
Electric Cars $80,000 $80,000 $50,000
Home Fuel Cells $150,000 $100,000 $28,000
Coal conversion $100,000 $70,000 $35,000
Oil conversion $90,000 $80,000 $30,000
CO2 capture and storage $120,000 $80,000 $46,000

Purchase this Solution

Solution Summary

This solution calculates the NPV of each project with MARR in Excel.

Purchase this Solution


Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.