Question

Anakha Ltd. wants to select one machinery, out of the two alternatives available on the basis of net present value. The cost and inflows of these machineries are given below.

Assuming annual interest rate of 10%, nd out net present values of these two machineries.

Answer 1

Procedure: 

Step 1 – Open a blank work sheet in LiberOffice Calc 

Step 2 – Enter the following details in respective cells.

Step 3 – Enter the formula = NPV (10%, C2:F2) – B2 in G2 to get the net present value of semi automatic machinery. Copy the formula to G3 

Output:

Machinery	NPV
Semi-Automatic	4683.42
Fully Automatic	52891.2