Question: Can you please explained it how you solved it in excel and which formula you used in each cell ? a. Given the available information,

Can you please explained it how you solved it in excel and which formula you used in each cell ?

Can you please explained it how you solved it in
a. Given the available information, what are the free cash flows in years 0 through 10 that should be used to evaluate the proposed project? Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Change in net working capital -$10,000 Sales revenue $30,000 $30,000 $10.000 Minus cost of goods sold $30,000 $30,000 $30,000 $30,000 $18,000 $18,000 $30,000 $30,000 $18,000 $30,000 $18,000 $18,000 $30.000 Equals gross profit $18,000 $18,000 $18,000 $18,000 $18,000 Minus General, sales and administrative expense $2,000 $2,000 $2,000 Plus overhead that would have occurred $2,000 52,000 $2,000 52,000 $2,000 52,000 $2,000 anyway $1,000 $1,000 $1,000 Minus depreciation $1,000 $1,000 $2,500 $1,000 $1,000 $2.500 $2,500 $1,000 $1,000 $2.500 $1,000 Equals net operating income $2.500 $2,500 $2.500 $2,500 $2.500 $2.500 Minus income tax Equals Net income Plus depreciation $2.500 $2.500 Cost of machine plus change in net working $2.500 $2.500 $2.500 $2.500 $2.500 $2.500 $2.500 $2.500 capital SU Equals cash flow SU SU SU SU SU 310,JUU the in the cost of capital tos una project is 1476, what is You climate of the value of the new project!" Cost of capital 149% NPV

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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 Finance Questions!