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Caroline's Candles would like to buy $134,000 of new candle-making equipment. However, the company has a...

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Finance

Caroline's Candles would like to buy $134,000 of newcandle-making equipment. However, the company has a major loanmaturing in three years and needs this money at that time to avoidbankruptcy. The candle-making equipment is expected to increase thecash flows by $27,000 in the first year, $48,000 in the secondyear, and $69,000 a year for the following two years. ShouldCaroline's Candles buy the equipment at this time? Why or whynot?

I need someone to show me how to do this problem in Excel,preferably with 2 tables of information. 1 with answers and 1 withhow you find those answers using excel so I can follow along andteach myself.

Answer & Explanation Solved by verified expert
3.9 Ratings (787 Votes)
YearCash flows0134000127000248000369000469000Net Income79000As per the above    See Answer
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Transcribed Image Text

Caroline's Candles would like to buy $134,000 of newcandle-making equipment. However, the company has a major loanmaturing in three years and needs this money at that time to avoidbankruptcy. The candle-making equipment is expected to increase thecash flows by $27,000 in the first year, $48,000 in the secondyear, and $69,000 a year for the following two years. ShouldCaroline's Candles buy the equipment at this time? Why or whynot?I need someone to show me how to do this problem in Excel,preferably with 2 tables of information. 1 with answers and 1 withhow you find those answers using excel so I can follow along andteach myself.

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