How do I solve this discounted cash flow analysis?
I’m having trouble with the last question of my homework. I hope someone who is good with understands.
Here is the simple chart:
Question:Assume every desk to be produced for the next 10 years will be made from wood that is cut by the saw that is purchased. Sales of the year the saw is purchased is projected $260,000 in sales and expected to increase 15% per year for 10 years. Use the chart to perform discount cash flow analysis. Now which saw would you CHOOSE and WHY?
This question is in the General Section. Responses must be helpful and on-topic.