Question: do the part a) develop performa project income statement using excel sheet 1. Learning Objectives (a) Develop proforma Project Income Statement Using Excel Spreadsheet (b)

 do the part a) develop performa project income statement using excel

do the part a) develop performa project income statement using excel sheet

1. Learning Objectives (a) Develop proforma Project Income Statement Using Excel Spreadsheet (b) Compute Net Project Cash flows, NPV, IRR and PayBack Period (c) Develop Problem-solving and Critical Thinking Skills 1) Life Period of the Equipment = 4 years 2) New equipment cost 3) Equipment ship & install cost 4) Related start up cost 5) Inventory Increase 6) Accounts Payable Increase 7) Equip. Salvage Value Estimated End of Year 4 (fully depreciated) 8) Sales for first yoar (1) $ 200,000 $ (200,000) 9) Sales Increase per year 5% $ (35,000) 10) Operating cost: $ (120,000) $ (5,000) (60 Percent of Sales) -60% $ 25,000 11) Depreciation (Straight Line)/YR $ (60,000) 5,000 12) Tax rate 35% $ 15,000 13) Cost of Capital (WACC) 10% $ ESTIMATING Initial Outlay (Cash Flow, CFO, T=0)

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