Question: Below is a partially completed capital budgeting analysis: Year 0 Year 1 Year 2 Year 3 Building Cost -52,000 Building, Equipment, and Investment in WC













Below is a partially completed capital budgeting analysis:






















Year 0Year 1Year 2Year 3





Building Cost-52,000



Building, Equipment, and Investment in WC costs occur only at time zero.

Equipment Cost-38,000








Investment WC-20,000



















Sales Revenue
31,604,00023,005,50032,507,500





Less: Operating Costs
22,250,00013,803,85021,355,250





Less: Depreciation
9,400,0009,400,0009,400,000





EBIT
000





Less: Taxes
-50,400835,37394,145





NOPAT

00





Plus: Depreciation
9,400,0009,400,0009,400,000





Operating Cash Flow-34,000





























a) Examine the analysis to ensure it contains no formula errors, then complete any missing calculations.









b) Apply custom formatting to the entire application (except labels) so that numbers display with a thousands separator, in whole numbers, and IN THOUSANDS









c) Modify the analysis so that IF a company has a negative NOPAT, the operating cash flow for that year and all following



years is set to zero. For example, if the NOPAT in year 1 < 0, then year 1, 2, and 3 operating cash flow should be set to 0.























Step by Step Solution

3.48 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Year 0 Year 1 Year 2 Year 3 amount in thousands Building Cost 52000 Equipment ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Organizational Behavior Questions!