cost analysis set up on a spread sheet

timer Asked: Feb 6th, 2016

Question description

The professor would like to us to tell him what would be the actual cost benefit for 30 years using three different options while presenting it to him on a spreadsheet . ( I use keynotes because I have a iMac) I am not clear on how to set it up. He wrote this formula in class:

Year 1    Year 2  Year 3........ Year 30 

benefit    x 97% (.97) = ____ x 97 ---- 30 years total

1. discounted rate is $1 Million dollars  then compare it to initial cost of 10 Million dollars 

2. discounted rate  is $750, 000 dollars then compare it to initial cost of $10 million dollars

3 discounted rate is $500,000 dollars then compare it to initial cost of $10 million dollars 

I am trying to find out what those million dollars is worth in 30 years but in today's value of the dollar. 

I only need a set up for each option with the amount for up to 3 years so I can see the process on how it works. 

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