Question: Fill in every step correct with correct formula and the correct final answer what is going to be in the green marked boxes Issues in
Fill in every step correct with correct formula and the correct final answer what is going to be in the green marked boxes
Issues in Capital Budgeting
a Developing a spreadsheet model, and using it to find the project's NPV IRR, and payback
Intermediate Calculations
Unit sales
Sales price per unit
Variable cost per unit excl depr.
Nonvariable costs excl depr.
Sales revenues
Required level of net working capital
Basis for depreciation
Annual depreciation rate MACRS
Annual depreciation expense
Ending book value
Salvage value
Profit or loss on sale of equipment
Tax on profit or loss due to sale of equipment
Net cash flow due to sale of equipment
b Conducting a sensitivity analysis to determine the sensitivity of NPV to changes in the sales price, variable costs per unit, and number of units sold
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