Excel 2013 Assignment 3

10. In cell B15 enter a formula to calculate the net present value of buying the computer system by adding the initial investment in cell E2 to the present value of the cash flows in the range E3:E39. Use the NPV function with the monthly discount rate in cell B14 as the rate return to calculate the ultimate cost of the computer system if Linda buys it.

11. In cell B16, enter a formula to calculate the net present value of leasing by adding the initial investment from cell F2 to the present value of the cash flows in range F3:F39. Again, use cell b14 as the rate of return and calculate the ultimate cost to lease the computer equipment.

12. Save workbook.

13. Use goal seek to determine the monthly payment from leasing that will cause the net present value of leasing to exactly match the net present value of buying. (Hint: You must explicitly enter the net present value of the buy option in the goal seek dialog box.)

14. Save the workbook as digital frames 2.

15. Return the monthly payment under leasing to its original value of $325

16. Linda might not be able to sell the computer system for $12000. Use goal seek to determine the resale value for the computer system after 36 months that will cause the net present value for buying to exactly match the net present value of leasing.

17. save workbook as digital frames 3 and then close it.