Canvas Student 3:18 PM Tue Apr 16 fx Read Only - Save a copy to edit....

Transcribed Image Text:

Canvas Student 3:18 PM Tue Apr 16 fx Read Only - Save a copy to edit. A B C D E Creating a NPV Profile (Most Likely Scenario) Home Insert BIU abc Final+Project+FIN+301+Spring+2024 Draw Formulas Data Review View G H I J K L M N 1 2 Discount Rate: 3 Year CF 0% PV(CF) 2% PV(CF) 4% PV(CF) 6% PV(CF) 8% PV(CF) 4 0 $ 5 1 $ 6 2 $ 7 3 $ 8 4 $ 9 NPV 10 Discount Rate: 0% 2% 4% 6% 8% 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 A A Create a NPV by creating a line graph of rows 9 and 10. ABC 123 P R S Cells B4 to B8 in this worksheet can link to cells C32 to G32 in the Blank Template worksheet. Find the present value of cash flows by referencing row 2 for the discount rate. You can do column C the same way as you did C33 to G33 in the Blank Template worksheet. Rows 9 & 10 are the table that are used to create the NPV profile graph. Instructions Blank Template NPV Calculations Final Case Project I. Given the following data on proposed capital budgeting project. Economic life of project in years. Price of New Equipment Fixed Costs Salvage value of New Equipment Effect on NWC: First Year Revenues Variable Costs Marginal Tax Rate Growth Rate WACC Beta Note Cells C17 and C18 include the initial cash flows today. Column D through G are the operating cash flows. Cells D30, D31, and D32 include terminal cash flows. PLEASE NOTE: You may need to change inputs provided in Column E at left. WACC $ Total Equity Total Debt Total Value Re 0 1 2 3 4 Rd Spreadsheet for determining Cash Flows (in Thousands) Timeline: II. Net Investment Outlay = Initial CFs Price Increase in NWC III. Cash Flows from Operations Total Revenues Variable Costs Fixed Costs Depreciation Earnings Before Taxes Taxes Net Income Depreciation Net operating CFs IV. Terminal Cash Flows Salvage Value Tax on Salvage Value Return of NWC Cash Flows Present Value of CFs Year Calculate: NPV Decision: NPV Accept? Reject? Tax Rate WACC: Cost of Debt N Periods I/Y PMT PV FV Cost of Equity Risk Free Rate Market Risk Premium Beta CAPM: 0 % Canvas Student 3:18 PM Tue Apr 16 fx Read Only - Save a copy to edit. A B C D E Creating a NPV Profile (Most Likely Scenario) Home Insert BIU abc Final+Project+FIN+301+Spring+2024 Draw Formulas Data Review View G H I J K L M N 1 2 Discount Rate: 3 Year CF 0% PV(CF) 2% PV(CF) 4% PV(CF) 6% PV(CF) 8% PV(CF) 4 0 $ 5 1 $ 6 2 $ 7 3 $ 8 4 $ 9 NPV 10 Discount Rate: 0% 2% 4% 6% 8% 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 A A Create a NPV by creating a line graph of rows 9 and 10. ABC 123 P R S Cells B4 to B8 in this worksheet can link to cells C32 to G32 in the Blank Template worksheet. Find the present value of cash flows by referencing row 2 for the discount rate. You can do column C the same way as you did C33 to G33 in the Blank Template worksheet. Rows 9 & 10 are the table that are used to create the NPV profile graph. Instructions Blank Template NPV Calculations Final Case Project I. Given the following data on proposed capital budgeting project. Economic life of project in years. Price of New Equipment Fixed Costs Salvage value of New Equipment Effect on NWC: First Year Revenues Variable Costs Marginal Tax Rate Growth Rate WACC Beta Note Cells C17 and C18 include the initial cash flows today. Column D through G are the operating cash flows. Cells D30, D31, and D32 include terminal cash flows. PLEASE NOTE: You may need to change inputs provided in Column E at left. WACC $ Total Equity Total Debt Total Value Re 0 1 2 3 4 Rd Spreadsheet for determining Cash Flows (in Thousands) Timeline: II. Net Investment Outlay = Initial CFs Price Increase in NWC III. Cash Flows from Operations Total Revenues Variable Costs Fixed Costs Depreciation Earnings Before Taxes Taxes Net Income Depreciation Net operating CFs IV. Terminal Cash Flows Salvage Value Tax on Salvage Value Return of NWC Cash Flows Present Value of CFs Year Calculate: NPV Decision: NPV Accept? Reject? Tax Rate WACC: Cost of Debt N Periods I/Y PMT PV FV Cost of Equity Risk Free Rate Market Risk Premium Beta CAPM: 0 %