Can I please get some help on my Case spreadsheet.

Module 8 Instructor Model 05/12/93 ROBERT MONTOYA, INC. (A) Cash Flow Estimation This case focuses on capital budgeting cash flow estimation, beginning with such basic concepts as incremental cash flows and sunk costs, and then moving to inflation adjustments, common life analysis, and abandonment value. The model develops incremental cash flow estimates and NPV, IRR, MIRR, and Payback for a typical capital project. The model is particularly useful for analyzing the impact of inflation on capital budgeting. The model also contains a graph that depicts the effects of price inflation and cost inflation on NPV. If you are using the student version of the model, the cells containing formulas have been blanked out. Before using this model, it is necessary to fill in the empty cells with the appropriate formulas. Once this is done, the model is ready for use. ======== ========= =========== =========== =========== =========== =========== INPUT DATA: KEY OUTPUT: Initial Investment: Price Freight Installation Change in NWC $2,200,000 $80,000 $120,000 $100,000 NPV IRR MIRR Payback Operating Flows and Inflation Rates: Sales volume Year 0 sales price Operating costs Price inflation Cost inflation 100,000 $40.00 80.0% 0.0% 0.0% Salvage Value, Tax Rate, and Cost of Capital: Salvage value Tax rate Cost of capital $150,000 40% 10% Effects on Other Projects: Revenue reduction $60,000 Cost reduction $40,000 ======== ========= =========== =========== =========== =========== =========== MODELGENERATED DATA: Net Investment Outlay: Price Freight Installation Change in NWC $2,200,000 $80,000 $120,000 $100,000 $2,500,000 ======== Depreciation Schedule: Depreciable basis = $2,400,000 EOY MACRS Dep. Book Year Factor Expense Value 1 33% $792,000 $1,608,000 2 45% $1,080,000 528,000 3 15% $360,000 168,000 4 7% $168,000 0 100% $2,400,000 ====== ======== Project Cash Flows: Unit price Unit sales Revenues Operating costs Depreciation Other project effects Year 0 $40.00 100,000 Year Year Year Year 1 2 3 4 $40.00 $40.00 $40.00 $40.00 100,000 100,000 100,000 100,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000 3,200,000 3,200,000 3,200,000 3,200,000 Before tax income Taxes Net income Plus depreciation Net op cash flow Salvage value SV tax Recovery of NWC Termination CF ======== ======== ======== ======== ======== Project NCF Decision Measures: NPV IRR TV MIRR Payback Cumulative Cash Flows: Year 0 1 2 3 4 SENSITIVITY ANALYSIS: Cash Costs Inflation: Price Inf l. $0 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 0.0% $0 $0 $0 $0 $0 $0 1.0% 0 0 0 0 0 0 2.0% 0 0 0 0 0 0 3.0% 0 0 0 0 0 0 4.0% 0 0 0 0 0 0 5.0% 0 0 0 0 0 0 6.0% 0 0 0 0 0 0 7.0% 0 0 0 0 0 0 8.0% 0 0 0 0 0 0 ======== ========= =========== =========== =========== =========== =========== END Effect of Price and Cost Inflation on NPV. $1 $1 $1 $1 NPV $1 $1 $0 $0 $0 $0 $0 0.0% 1.0% 2.0% 0% Cost Inf l. 3.0% 1% Cost Inf l. 4.0% Price Inflation 2% Cost Inf l. 5.0% 3% Cost Inf l. 6.0% 4% Cost Inf l. 7.0% 5% Cost Inf l. 8.0%