Analyzethe case study, "Frank Smith Plumbing."

Analyzethe "Frank Smith Plumbing's Financial Statement" spreadsheet.

Comparethe cost of the truck to the cash flow records

Compileyour calculations in a Microsoft Excel document

Frank Smith Plumbing Data Needed for analysis: Year-1 Year-2 Year-3 Project Cost of Capital (borrowing) 12.00% Cost of Truck $200,000 Cost of additional equiment attached to truck $15,000 Tax rate 35% Annual Before Tax & Depreciation Truck Projected Earnings Year-4 Year-5 Year-6 Year-7 Year-8 $60,000 $55,000 $50,000 $40,000 $30,000 Depreciation Percentage Rate (MACRS)* 20.0% 32.0% 19.2% 11.5% 11.5% 5.8% * The proposed truck has an estimated economic life of seven years but will be treated as a five-year MACRS property for depreciation purposes. 0.0% 0.0% $70,000 $70,000 $65,000 Calculate the following -- light yellow highlighted cells need to be completed Year-0 Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 -$215,000.00 $60,550.00 $69,580.00 $56,698.00 $47,653.75 $44,403.75 $36,864.50 $26,000.00 $19,500.00 Annual Before Tax & Depreciation Truck Projected Earnings Depreciation Expense Annual Before Tax Truck Projected Earnings Tax Annual Projected Truck Earnings Depreciation to add back Projected Truck Net Cash Flow Decision Criteria: Pay Back Period Discounted Pay Back Period (DPB)** Net Present Value Internal Rate of Return Profitability Index Years Years Discounted Cash Flow Needed for DPB Calc. Recommendations