Struggling with calculating the Week 3 WMBA 6050 Accounting for Mgmt Decisions formulae for week 3. I am not understanding how to solve the following: I really need help

2. Depreciation=initial cost/Useful life
4. Solve net annual cash flow-cash outflow - Trying to figure out out the net cash flow

Accounting Rate of Return = Average Net Income / Average Book Value

Payback = Initial Cost / Net Annual Cash Flow

Net Present Value = Initial Cost + [net annual cash flow * factor]factor is from Table 3-13 @ the intersection of cost of capital & useful life.Remember the Initial cost in an outlay and therefore a negative number. Also, the factor for the initial investment should be 1 since this is a cash outlay and has no Present Value.

Internal Rate of Return Using Excel: =IRR(B76:B96) or =IRR(G76:G96) Done Manually: From the Table 3-13, the intersection of [initial cost/net annual cash flow] & useful life

Getting started - you need to solve for some of the inputs to the formulas listed above:

The first thing you need to solve for is deprecation.Depreciation= Initial Cost / Useful Life

Next, you need to solve forNet Annual Cash Flow, which is Cash Inflow - Cash Outflow.From the information given, the only outflow is Taxes.The calculations for Net Cash Flow is:

Income - Depreciation = Net Income before Taxes

Taxes = Tax Rate * Net Income before Taxes

Net Cash Flow = Income (or cash inflow) - Taxes

Then, you need to know theNet Income, which is Operating Income - Depreciation= Net Income before Taxes - Taxes =Net Income.

See the completed Jakarta Income Statement, as a check and guide for Bangkok.

Next, you need to calculate theAverage Book Value(BV) over the useful life, in both cases 20 years.

Year 1 BV = Initial Cost - Depreciation/2(Note: the first year depreciation is always the depreciation)

Year 2 BV = Year 1 BV - Depreciation

Year 3 BV = Year 2 BV - Depreciation

And so on......to year 20

To find the Average BV you simply take the average of all of the BVs, i.e. Year 1+Year 2+Year 3+ ......Year 20/20 (see the completed section for Jakarta in the attached spreadsheet)

From here, you have all of the inputs needed to solve for the four computations using the formulae above.

So, take this all of this information, use the attached spreadsheet to complete the Jakarta and then complete the same for Bangkok. Send this back to me for a quick review, then you will be able to write your analysis and recommendations.